If you own a motor vehicle, then you are probably paying for auto insurance. Auto insurance is a product required by law to help protect drivers against financial harm in the event of an accident. While coverage is required, each insurance agency determines the amount of money they will charge for their policies. Here are three surprising things that you can do to help lower your insurance premiums without sacrificing coverage in the future.
1. Choose the Right Vehicle
Did you know that the vehicle you drive is directly related to the amount of money you pay in auto insurance? If you are in the market for a new vehicle, you could lower your monthly premiums simply by choosing the right car.
Smaller vehicles tend to be more affordable to insure than trucks or SUVs. Many insurance agencies offer discounts for drivers who purchase hybrid or electric vehicles. The overall safety ratings of a vehicle will also come into play when determining insurance premiums. Work closely with your insurance agent to select a vehicle that will both meet your needs and keep your insurance costs low.
2. Improve Your Credit Score
Many drivers are surprised to find that their credit score can impact their auto insurance rates. Insurance companies are in the business of evaluating a person's behaviors to determine the likelihood of that person causing an accident.
Good credit is associated with responsible behavior, and people who are responsible tend to be more cautious and reliable. If you have a low credit score, your insurance provider may view you as a higher risk. Poor credit will cause your insurance premiums to increase. Work to pay down debt and improve your credit score so that you can enjoy a reduction in your auto insurance costs.
3. Remove Unnecessary Coverage
Have you taken the time to read through your auto insurance policy? If not, you may be surprised to find that you are paying for coverage you don't really need.
Most states set minimum insurance standards that must be met. Lenders who finance vehicles can also have their own insurance requirements. As long as you have met the state and lender minimums, there is no need to pay for additional coverage. Work with your insurance agent to identify which type of coverage makes the most sense for your unique situation.
Be proactive in reducing your auto insurance rates to save money over time. Reach out to a company like The Lofrumento Agency, Inc. that can help you with auto insurance.