Top Ways To Keep Auto Insurance Cost Down

As an Insurance agent, I am always asked “how do I keep my auto insurance cost down”? In this article, I am going to share some ways and tips on how to do this. Some of them are obvious, such as don’t get speeding tickets, while others such as your credit score, not so much.


-Avoid getting moving violations

This is probably the most obvious one. Don’t speed, don’t run stop signs and drive safe. This not only affects your pocket book, but also your personal safety. Over 30,000 people die each year in car accidents. Also, I have seen 2 point defective vehicle tickets drive the price of insurance up. Insurance companies look back anywhere from 3 to 5 years on your driving record. I’ll also warn you that DUI’s and other serious violations turn you life upside down and you will be paying double for your auto insurance.

-Maintain a healthy credit Score

Studies have proven that people with good or high credit scores, are less of a risk for insurance companies to insure. They file less claims, are at less risk to get into accidents and pay their bills on time. Overall, if you have better credit, the less your premiums will be.

-Take advantage of ALL the insurance companies discounts

Auto insurance companies offer all kinds of discounts. Multi-car, Multi-driver, Multi-policy, good student, owning a home, accident free, college degree, electronic payment, paperless and many more. Make sure you talk to you agent and you are taking advantage of all the discounts offered.

-It might be a good idea to carry a higher deductible on that new vehicle

If you have a brand new, 50,000 vehicle you just drove off the lot, you might want to consider carrying a higher deductible for your Comp and Collision. On a vehicle with that much value, I would personally carry no lower then a 1000 dollar deductible. Over a 2 year period, you could save hundreds of dollars, if not more.

-Avoid filing claims

Claims is a very quick way to drive up insurance cost. This first comes down to safe driving. Drive smart, don’t run red lights, stop at stop signs and quit tail gate-ting the driver ahead of you.

Also, if you have a $500 deductible and back up into a pole and get 700 dollars of damage to your car, it might be best to pay that extra 200 out of pocket. The cost of your insurance going to after the claim, may be more costly then the 200. If you are in the case where a lot of damage occurs, use your insurance. That is what it is for.

More overall point in avoiding filling claims, is pick and choose when to file them at the right times.

-Decrease you liability limits & Reject Uninsured/Under insured Motorist.

Only in extreme cases would I recommend this. As a matter of fact, I don’t recommend this at all. If get into an accident, these are some of the most important coverage’s on your policy. You can live with a higher deductible, but you can’t live with either yourself or someone else’s 100,000 dollar hospital bill. By the way, if you run into an agent or company that recommends this, you should ask yourself if you should be doing business with them in the first place.

-Do you need Med Pay?

If you have a Cadillac insurance plan, you most likely don’t need this coverage, At the same time, the cost of it is so low, you might as well keep it on. I have very few clients who reject this coverage due to cost.

Overall, I have provided a basic plan on how to keep your auto insurance cost down. Some of this may be common sense, some may have provided detail. I hope this article helps. One more idea on how to keep cost down. If you have been with the same company for a long time, its time to shop around. There is not need to be “married” to one insurance company.


About Mark A. Schneider
Owner of Denvers Insurance and Close Contact Security Services.

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