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 as not 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 insurance cost 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 double your auto insurance rate.
-Maintain a healthy credit Score
Studies have proven that people with good or high credit scores are less of a risk for insurance companies. They file less claims, are at less risk to get into accidents and pay their bills on time. Overall, a better credit score equals better premiums.
-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 that you take advantage of all the discounts offered.
-Carry higher deductibles
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 drive up insurance costs. This 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 acquire 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. In the case where a lot of damage occurs, file a claim.
-Decrease you liability limits & Reject Uninsured/Under insured Motorist.
Only in extreme cases would I recommend this. Overall, I don’t recommend this at all. If get into an accident, these are 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 good health insurance plan, you most likely don’t need this coverage. Though the cost to carry med pay is not very much. 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. My final point is to shop around on your insurance. If you have a broker or agent you really like, ask them to do an insurance review.
Karen W. Schneider
Mark A. Schneider
