How to Keep Your Auto Insurance
Keeping your auto insurance affordable is a key factor in staying within your budget in this tight economy. But the insurance industry is facing
more claims, more fraud, and more natural disasters. Additionally, many consumers are dropping their car insurance coverage, leaving insured
drivers and their policies to absorb the cost of their accidents. Now, more than ever, consumers must be educated about how to keep their auto
insurance premiums low.
Clean up your credit report. Statistics show that people with poor credit are more likely to make claims, making your credit
rating a big determining factor in how much you will pay for car insurance. Even if your credit rating is poor, there are things
you can do to improve your rating in as little as thirty days. Pay your bills on time, pay off bad debt, and keep your credit card
Keep your driving record clean. This seems like a no-brainer, yet many drivers have a hard time avoiding traffic violations. If
this describes you, then take a defensive driving course. Your insurance company may give you a discount, but more
importantly, you will relearn the skills you need to drive safely. If you have avoided traffic violations, keep up the good work.
Always know the speed limit in unfamiliar places, always use your turn signal, and turn on your night-time driving lights before
you leave the driveway.
Compare car insurance prices before you buy that vehicle. A sports car or four wheel drive may sound like great amenities.
But make sure you know their true cost as vehicles with these features cost more to insure. You may think that car you are
considering is not a sports car, but the auto insurance company may disagree.
Shop around every six to twelve months. Even if none of your insurability factors change, the rates you pay may. This is
because insurance companies base their rates on the claims they processed in the previous six months. If the claims were
lower than expected, rates go down. Conversely, if the claims were higher than expected, rates, and quotes, go up.