Lowering the Cost of Auto Insurance

There are a number of factors that go into determining the cost of your car insurance premiums, and we have some helpful suggestions to help you lower your costs.

 

How to Lower Your Cost

 

  • Models make a difference
    Shopping for a new car? The type you choose can affect your costs. High-end luxury and performance vehicles cost more to repair, maintain, and insure than family sedans. The age of the car also makes a difference. Newer cars might cost more than older ones.

  • Safety Saves
    Not only is it smart, but a clean, safe driving record can also lower your rates. Ask your agent about other ways to be rewarded for safe driving and vehicle protection (such as anti-theft devices). In addition, taking a driver-training or defensive driving course may qualify you for additional discounts.

  • Determine your deductible
    A deductible is the out-of-pocket amount you are willing to cover in the event of a loss. The higher your deductible, the lower your premium. Increasing your deductible saves you money.

  • One company + combined polices = lower cost
    The more insurance policies you have with a company, the more substantial the savings. So, try having one company cover all your insurance needs.

  • Small Claims Filing
    Sometimes, it makes sense not to file for small claims, such as damage to your vehicle that is about the same or slightly more than your deductible. You need to decide for yourself in such cases if its worth paying for the damage yourself or filling a claim that will be on your insurance record for three years or so.

  • Update your agent on any changes in your life
    Are you still insuring drivers who no longer live with you? Do you drive less for your job than you used to? Has your Insurance Bureau Score changed? Moved? All of these things affect how much you pay and could result in a premium reduction. Talk to your agent.

 

Other Auto Insurance Cost Factors

What you pay for auto insurance could be determined by many factors. In addition to the information above, here are some other things that may affect how much you pay:

 

How much you drive
Drivers who use their car for business and long-distance commuting usually pay more than your average driver.

 

  • Your age, gender, and marital status
    Statistics show that these factors relate to accident rates so they’re a consideration.

  • Where you live
    Rates vary depending on city, state, sometimes even different neighborhoods and ZIP codes within a city. Insurance companies research the accident/claim rate in an area, and your premium will reflect that. Live in a high accident area? Expect to pay more.

  • Your driving record
    Drivers with a history of accidents or motor vehicle violations (such as speeding tickets) generally pay more than those who are accident/ticket free for several years.

  • Your credit history
    Studies have shown that credit history relates to accident rates and may make you seem like a higher risk. Find out more about your Insurance Bureau Score and how it can affect your rates.