When the time comes to renew your auto insurance, ask your insurance agent here at Giuffre Insurance about ways to reduce your costs. Many times, auto insurance isn’t in your control in terms of the coverage you need and the costs you’ll pay. There are set rates out there based on things like your vehicle’s size and the type and where you live. Other factors are more controllable. These are things you can do to see a significant reduction in your auto insurance premiums.
Start with Your Driving History
Perhaps the most important factor to keep in mind is your driving. Insurance companies will pin the cost of your coverage on how much risk you present to the insurer. Those who are high risk, such as those with poor driving history, will likely pay more. Some key reasons why this may increase include points added to your license for things such as:
- Reckless driving
- Speeding violations
- Lack of wearing a seat belt
- Car accidents you were responsible for
If you’re unsure what you can do to reduce your rates, start here. Work to become a safer driver with few moving violations on your credit.
Reduce the Number of Claims You File
Your car insurance is there to help you when there is an accident. Yet, filing too many claims in too little of an amount of time can impact your insurance rates. File a claim if you need to do so, but try to reduce the risk that you’ll have to file a claim by improving your driving skills. Do your best to avoid accidents, for example. You may be able to avoid claims for storm damage to your home by storing it in the garage.
Ensure Your Coverage and Deductibles Are in Line
Though your auto insurance coverage is somewhat set in stone, there are a few things you can do to adjust it. Most importantly, recognize that you shouldn’t be over-insured. That means you should not have more coverage than your vehicle is worth. This will change over time.
Next, take a look at your deductible. You don’t want this to be too high, as that could leave you at risk for being unable to afford the repairs you need on your vehicle after an accident. Yet, if you have an emergency fund and savings, it may be possible to increase your auto insurance deductible some. Be sure it is in line with what you can afford.
Always Ask for the Discount
Many people don’t ask for discounts that they qualify for, and that can be a problem. Yet, it takes just a minute to do so. For example, you may qualify for a discount if you do not drive much during the year. Good students with A and B grades may also get a lower insurance rate for their coverage. Insurance companies also provide discounts to drivers who are considered safe drivers. These are individuals who do not have any violations on their driving record.
There are other steps you can take to control more of the costs you owe. For example, maintain a good credit score to show your insurer that you are a wise financial risk. You can also make better decisions about the vehicle you drive. Choose a low-risk vehicle or one that has a strong safety rating. Doing this can help to reduce the amount of auto insurance coverage you need and the premium rates you are charged. This type of comprehensive look at your insurance coverage is a critical factor in protecting your vehicle affordably.