6 Surprising Things About Car Insurance

The average driver understands that prices can vary greatly from one auto policy to the next, and it’s important to never overlook an opportunity to save money. Although this often requires changing policies many times throughout the years, sometimes it’s possible to save money with a simple renewal. Before you enter into an agreement, check out the 6 surprising ways that you can ensure that you don’t break the bank when it’s time to renew or change your insurance policy.

#1 Inquire About Discounts and Promotions
Insurance agents that deal with customers may forget or purposely withhold information on discounts, especially if it comes to making a commission on higher premiums. Don’t be afraid to ask about ways that you could save by renewing because there may be an incentive for loyalty. If you work for a larger company, check with the HR department to find out of there are any group discounts that you could take advantage of by switching to their preferred company. Teachers, law enforcement, senior citizens, and veterans are a few special groups that often qualify for discounted insurance through some companies.

#2 Nurture Your Credit Score
Your credit score is going to follow your around throughout your adult life, and auto insurance companies are no exception. Individuals with a poor or limited credit score may notice that companies increase their rates in comparison to those with great credit. A high score is seen as an indicator of loyalty to companies, in addition to making on-time payments. People that carry a lower score are more likely to file a claim, and switch companies as often as every 6 months.

#3 Pay Up On Your Policy
Installments are a great way to keep insurance on your vehicle in a way that is financially manageable. If you have a bill to reference, you can see that there are fees associated with making smaller payments. While there is nothing wrong with paying monthly, you’re going to save money by paying off your entire premium as soon as you get the chance.

#4 Consider Driving An Older Vehicle
It’s logical that a person driving a sensible family sedan is considerably less likely to get into an accident than someone driving a flashy new sportscar. Insurance companies look for factors like this to determine the premiums that they charge. It may be surprising that it’s a lot cheaper to insure a car that is only a couple of years older than the newest model. If a claim is filed, it’s often cheaper to repair or replace an older vehicle than one that is loaded with new features and a hefty price tag. On the other hand, a car that has additional safety features is a money saver because accidents are less likely to result in significant injuries. Another factor to consider is that liability insurance on an older model vehicle is going to be a lot cheaper than carrying full overage on a new lease. If you find yourself in a position to buy or lease a new vehicle, keep these facts in mind as they will inevitably impact your insurance premiums.

#5 Shop Around
Loyalty to specific brands and companies may work in some situations, like laundry soap or a local dry cleaner. Auto insurance is a major household expense, and it doesn’t hurt to price shop once in a while. Many drivers find it easiest to keep a policy renewed for years without ever questioning if there is money to be saved by going elsewhere. If you’re not receiving some type of discount for staying with one company, it may be time to move on. Price shopping is easiest online where you can compare similar coverage with multiple companies without ever leaving home.

#6 Keep Your Current Account In Good Standing
There are so many options when it comes to purchasing an insurance policy for your vehicle, but you should never burn bridges with your current company. Although it’s not always the case, you may already be receiving your lowest possible premium. Filing excessive claims or missing a payment can be enough to get the axe from your policy, and you may lose a great relationship.

Knowledge is your greatest tool when it comes to getting the best possible deal on an auto insurance policy. Ask questions about options to save money before signing any agreement, even if you’re simply renewing with the same company. It never hurts to take a look around to see what other companies are offering before you enter into a policy for the next 6 months to a year.

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