How Can I Lower My Auto Insurance Rate

| August 15, 2018

I Need to Lower My Auto Insurance Rate!

“I have not had a ticket or any claims on my auto insurance in years.” “I am a safe driver, and I am responsible. Yet, I am still paying an astronomical amount of money for auto insurance!” “How can I lower my premium and still keep good coverage?” I hear these statements and questions on a regular basis, so I am going to give you some tips to keep your auto insurance rate low.

1. Driving History Affects Your Auto Insurance Rate

One of the biggest factors in determining auto insurance premiums is driving history. If you have any tickets, you will typically be charged for those for three years. So, remember that little speeding ticket that you got while going through the speed trap in Mayberry? It may end up costing you hundreds on your insurance over the span of the next three years.

Claims and accidents will stay on your auto claims history for five years with most insurance companies. If you are found to be at fault in an accident, you will usually see a fairly substantial increase on your auto insurance rate. If you have a comprehensive claim or a not at fault accident, the increase is typically a lot less if there is any increase at all.

2. Credit Scores Factor Into Your Auto Insurance Rate

I know, I know. It seems absolutely crazy that credit would affect your auto insurance rate. But, those guys in suits that are sitting behind computers all day looking at statistics say that people with lower credit scores are more likely to have claims on their insurance. In turn, this causes higher insurance rates for people with lower credit scores. So, the higher you can keep your credit score, the lower your premium will be on your auto insurance.

3. Age, Marital Status, Occupation and Location

Age definitely has some impact on your auto insurance rates. Without a doubt, a 16 year old driver or a 90 year old driver is going to cost a lot more to insure than a 40 year old driver. However, you do not see the immediate drop in premium at age 26 like you would see 10 years ago. You will usually see a gradual decrease over time.

If you are married, your insurance rate is usually a little bit less than a single person’s auto insurance rate. Also, you may see some discounts on your auto insurance based on your occupation.

Location will be another factor in your rate. If you live in a big town with lots of traffic, you will typically have a higher insurance rate than the person who lives in a small town with little traffic.

4. Coverage Limits and Length of Prior Insurance

Most companies give a pretty good discount to you if you are carrying higher liability limits. The more coverage you have, the more your discount will be. Next time you are shopping for auto insurance, remember that even though the higher coverage may cost a little more now, it could save you more over time. Most companies also give a discount for how long you have been insured with the same company. Again, this discount will increase the longer you have been with a company.

5. Multi Policy Discounts

Having more than one policy with a company can drastically lower your insurance rates. Typically, you will want to package your auto and home insurance or auto and renters insurance together to get the best discounts. Adding an umbrella policy to the account can provide additional discounts – sometimes it saves you enough to pay for the umbrella policy completely!

6. Company Specific Discounts

A lot of companies will offer discounts that are unique to them. In order to find out all of the discounts that you may be eligible for, you should schedule a time to review your insurance with your insurance professional.

Options, options, options

A great way to make sure you are not being overcharged for your auto insurance is to work with an independent agent, like RCI Insurance Group. Being independent, RCI has over 17 companies to quote your auto insurance with. This gives us a competitive advantage in the market; meaning, we have a lot of options to offer so that you can keep your auto insurance rate low and your coverage high! Call or email us today to review your insurance, so you can put more money in your piggy bank!