There are a number of factors that will raise your auto insurance, including filed claims, the age of insured drivers, or your driving habits. Once your insurance has hiked, it’s very difficult to bring it down again.
Still, no matter what’s made your rates spike, there are some ways that you can save on auto insurance. Here are some tips and tricks for getting more affordable rates.
1. Switch Providers
Oftentimes if you current rate has recently risen, you can switch to a new provider. You’ll often find the same coverage for a much more manageable price. Start calling around or visiting websites to get quotes and find the best deal.
The best part about switching auto insurance is that you can do it even before your policy term is up. As soon as you make the change, the remainder of your paid policy will be refunded to you.
2. Go Local
If you shop for car insurance in your state rather than at the national level, you’re more likely to find the coverage you need at a price you can afford. If you live in Texas, for example, compare the local insurers in your state, including the national providers and those within the city you live. It’s worth looking a little closer to home for better rates.
3. Get a Newer Car
Though a newer car is more expensive upfront, it can save you in the long run on both maintenance and insurance costs. If you’re driving a vehicle worth $5,000 or less, your rates are often higher because you’re more likely to file a claim.
Many insurers will cut your rates significantly just because you have a car that’s less than five years old. Newer cars need less work and have features that will improve your driving.
4. Pay Every 6 Months
Today, most people choose to pay for their auto insurance through monthly payments for convenience sake. However, you pay anywhere from $50-$100 more on your policy by paying monthly instead of every six months.
Save up your money ahead of time and pay at the beginning of your policy instead of throughout. The amount is small, but every little bit helps!
5. Improve Your Credit Score
Many people don’t realize that their credit scores affect their auto insurance premiums. Auto insurers in most states can access your credit score and raise or lower your rates accordingly. The worse your credit is, the more you’ll likely pay.
Work on improving your credit by eliminating debt and steadily paying bills on time. It will take a few years, but you can improve your credit score and see lesser policy rates as a result.
Auto insurance is a very necessary expense, but you don’t have to pay outrageous prices to stay protected. Apply these tips to lower your expenses and have a little more peace of mind.