Many drivers think of auto insurance as a “necessary evil.” It’s often regarded as just another mandatory thing to pay for, like it or not. It’s not until they have an accident that they realize the value in proper auto insurance coverage and how convenient it can make an inconvenient situation. Sure, you may be a great driver that would never cause an accident, but you can’t control what incidents other drivers cause, and you also can’t control your reactions on the road as much as you may think. An accident can happen at any time. A deer could come out of nowhere. Weather could cause unforeseen hydroplaning. The smallest distraction could lead to a fender bender in seconds. For all the unpredictable ways damage could be caused to your car or someone else’s, having good auto coverage is more than just paying for peace of mind. It provides benefits that make it worthwhile when you need it. However, there are ways to save, starting with some of the most common below.
How Can You Cut Auto Insurance Costs?
While your insurance agent can help you determine how to get the best auto insurance rate for you, it’s a good idea to be armed with the right knowledge yourself. Knowing the factors that lead to your rate will help you make decisions that secure a better rate for you in the future, so here are seven ways to positively impact what your coverage rate will be.
- Choose a higher deductible. Yes, the thought of paying higher for anything sounds counter to your goal, but a higher deductible means you’ll have a lower premium. Paying your premium is a guarantee. Paying the deductible may never happen, so long as you never get into an accident. However, do be sure to only go as high as you’d be comfortable swinging in the event you do run into an issue and are responsible for paying the deductible out of pocket.
- When buying your vehicle, look for safety ratings. The safer your car is rated, the more likely you are to be covered for less. Alternatively, if you drive a vehicle that has a high known likelihood of theft, you could end up paying more.
- Maintain a good driving reputation. This one is a no-brainer. Avoiding accidents and even speeding tickets is a sure way to cut your coverage costs. Drivers who have these on their record begin to be considered a risk, therefore having to pay more.
- Be a homeowner…in the right location. Owning a home qualifies you for lower rates because it typically grants you a discount when you bundle your home and auto insurance. Owning a home in a more metropolitan area, however, could adversely affect your premium. The more dense, high traffic your area experiences, the more likely you are to be involved in an accident, so your coverage comes with more risk.
- Consider your demographics. This isn’t one you have much say over. Based on the research, females, older drivers, and married drivers experience accidents less frequently. So, males, young people, and those that are single are likely to be subjected to a higher rate. Whether the statistics are true for you don’t exactly matter. You’re likely to be lumped in to these respective demographics regardless.
- Keep your credit in check. Having solid credit is beneficial in many ways, and those with higher credit-based insurance scores are known to have fewer claims over time, according to the data. Not every state is allowed to factor credit history into your auto insurance rate, though.
These top six factors can take you a long way when it comes to getting a rate you can live with. If you ever need to use your auto insurance, you’ll be thankful to have a good plan, and you’ll be thankful to have an affordable premium all year round. Auto insurance isn’t a burden. It’s insurance because you and your vehicle are worth insuring. We at The Seltzer Group help drivers every day, educating them on getting the best rate and guiding them in choosing which coverage is right for them. If you’re new to auto insurance or would like to discuss changing your plan, give us a call today or stop by and see us at one of our three locations!