Do you have high insurance premiums and you don’t know why? I have 5 secrets that may help you understand why or things you may be able to change to lower your rates.
1. Improve Your Credit Rating
Folks are sometimes surprised to find that insurance companies may also consider credit ratings when determining insurance premiums.
Why is your credit rating considered? Many insurers use credit-based insurance scores. Insurers will say their studies show that if you are responsible in your personal life, you are less likely to file claims. Regardless of whether that is true, be aware that your credit rating IS a factor in figuring insurance premiums and do your utmost to keep it high.
2. Take a Defensive Driving Course
Sometimes insurance companies will provide a discount for those who complete an approved defensive driving course. Drivers may also be able to reduce the number of points they have on their licenses by taking a defensive driving, accident prevention, or other course. Make sure to ask your agent/insurance company about this discount before you sign up for a class. After all, it is important that the effort being expended, and the cost of the course translate into a big enough insurance savings. It is also important that the driver sign up for an accredited course. Every state has its own rules about accredited defensive driving courses.
3. Larger Cars Cost More
Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle. You can feel good about protecting the environment and save money on insurance at the same time. Find out the exact rates to insure the different vehicles you’re considering before making a purchase.
4. Increase Your Deductibles
When selecting car insurance, you can typically choose a deductible, which is the amount of money you would have to pay before insurance picks up the tab in the event of an accident, theft, or other types of damage to the vehicle. Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that the lower the deductible, the higher the annual premium. Conversely, the higher the deductible, the lower the premium. Ask your agent how your premium might be affected if you raised your deductible. It may make the annual premium better by several percentage points and put some money back in your pocket, or the savings may be minimal. If you are reluctant to file smaller claims to avoid the risk of pushing up your premium, raising the deductible may be a particularly sensible move.
5. Shop Around For Better Rates.
If your policy is about to renew and the annual premium has gone up markedly, consider shopping around and obtaining quotes from competing companies. Also, every year or two it probably makes sense to obtain quotes from other companies just in case there is a lower rate out there. Remember, cheap does not always mean good, and going with the lower-priced company is not always the wisest decision.
This is where I come in at Bridge City Brokerage, I can find you the best policy for the right price. I can run your quote through some of the major companies and find the best rate available. Call me today at 503.960.8018 or contact me here and let’s get started.