Is there anything YOU can do to control your auto insurance rates?
Sometimes it feels like no matter what, your auto rates increase year over year. Or you feel like what you are paying is just too much. You may think the premiums you pay for your auto insurance are totally out of your control but there are a few things to keep in mind and try to keep more dollars in your bank account!
- Credit – Believe it or not, a good credit score affects your insurance rates, just like it affects your interest rates. Insurance companies feel that if you pay your other bills on time you will pay your insurance bill on time too. Statistically speaking, people with higher credit scores tend to be more risk-adverse in life in general and in driving as well. Of course, this isn’t always the case, but there is enough data out there to support this theory.
- Multi-Policy Discounts – Many of the big national carriers have utilized advertising campaigns in the past few years that speak to the fact you get a discount with an insurance company when you have more than one policy with them. It’s kind of a “buy more save more” situation. You probably know you want to bundle your home and auto policies, but having a personal liability umbrella, and life insurance can also save you more. If you own a business, many carriers will give you discounts on your commercial and personal policies when they are all with that carrier.
- Deductibles – When you carry very low deductibles on your insurance, you are paying higher premiums for sure. The insurance companies assume that you are going to frequently file claims and charge you more, for this reason. We all know that more claims=more premiums, so think about increasing your deductible a bit and using your insurance policies for larger damage. So think about a higher deductible and pay for the smaller dings out of pocket.
- Driving History – This is a no-brainer, right? If you get tickets, have accidents (even small ones), or don’t keep your driver’s license current, insurance carriers will DEFINITELY make sure you pay for those infractions. Most also want to see 3-5 years of driving history to be sure the driver has a history of safety. So slow down, be extra cautious, and keep your license up-to-date. Be sure you don’t drink and drive!
https://mint.intuit.com/how-mint-works/credit
https://drive.ky.gov/driver-licensing/Pages/Drivers-License-and-ID-Card.aspx
Your insurance agent should be able to advise you on ways to keep your premiums low, so make sure you work with someone who will act as an advisor and help you out.
Erie Insurance offers a program for your auto insurance that allows you to lock in your rate. With ErieRatelock, as long as you keep the same drivers, vehicles and address on the policy, your rate is locked in. It’s a pretty helpful and unique feature, so let me know if you want more information and pricing! kris@castleinsuranceky.com
