5 Ways To Keep Your Auto Insurance Costs Low

Posted on: 4 May 2017

The cost of your auto insurance can depend on many different factors, such as your credit history, the type of car you drive and your driving record. If you find yourself paying too much for auto insurance, you probably feel pretty frustrated. However, you can make some changes and reduce your costs. Here are five effective ways to keep your auto insurance costs low:

Check Your Credit Score

If you have a low credit score, it could cause your auto insurance rates to go up. This is because car insurance companies believe individuals with low credit scores are more likely to make insurance claims. Try to raise your credit score by paying your bills on time and making more than the minimum payment.

Take a Defensive Driving Course

Defensive driving courses are not just for teenagers. They can also be beneficial for adult drivers who have too many points on their driving records. If you successfully complete a defensive driving course, you can get points shaved off your driving record and possibly get your car insurance rates lowered.

Consider Carpooling to Work

The amount of miles you drive can have an effect on your insurance rates. One effective way to reduce the miles you drive is to carpool with coworkers to your job. Pooling with your coworkers can also reduce the wear and tear on your vehicle.

Choose Your Next Vehicle Wisely

If it is time to purchase a new vehicle, it is important to consider how much it will cost to insure it. That BMW, for example, might impress you friends, but it is more expensive to insure than a standard vehicle. It is better to choose an economy car that is more practical.

Ask About Discounts

You may qualify for auto insurance discounts and not even know it. For example, if you are retired, you might qualify for cheaper insurance. The next time you see your insurance agent, do not be afraid to ask him or her if you qualify for any discounts. He or she should be more than happy to find out if you can get discounts.

You do not have to keep paying an arm and a leg for car insurance. If you follow these helpful tips, you can lower your rates and have more money in your bank account. However, if you still can't reduce your rates, do not hesitate to shop around for new insurance.


Little-known Insurance Tips

While I have had auto insurance ever since I bought my first car at 16 years old and home insurance ever since I bought my first home several years ago, I have to admit that over the years I knew very little about insurance. I tended to just look at the price of the coverage and sign the paperwork without really looking into the pros and cons of each policy. After my friend was in a car accident recently (thankfully, she is okay!) and she said she had to pay for some of the damage to the other vehicle out-of-pocket even though she had a minimum state coverage auto insurance policy, I decided to put a lot of careful research into insurance policies and what they really offer. I want to help others by sharing the information I have learned on a blog. I hope I can help you!