Have You Ever Wondered “How Can I Lower My Car Insurance Rates?”
Everybody that owns a vehicle and drives on public roads is required by law to have auto insurance. Each state sets a minimum liability limit to needed to comply with those laws. In the state of Colorado those minimum limits are currently set at $25,000 bodily injury liability per person, $50,000 per accident, and $15,000 in property damage. Just because you are required to have auto insurance, doesn’t mean you should be paying more than you need to. Here are five quick tips to lower your auto insurance:
- The easiest and most obvious way to lower your insurance rates is to shop around. Insurance is one of the largest household expenses most families have. Between auto, home, life and health, those premiums add up quick. When you make a major purchase, like a car or a home, you don’t buy the first one you see, and insurance should be no different. An independent insurance agent can shop multiple carriers for you, but if you don’t mind doing the work yourself it may be time to pick up the phone and get some quotes.
- The second most obvious way to keep your auto insurance rates down is to drive safely. Accidents and tickets can have a severe impact on your rates. If you are driving it is important to make sure you are not distracted. That means putting down your cell phone and paying attention to posted speed limits. This can be difficult for a lot of people. The world we live in has a strong technology foundation. It may take something drastic, like making sure your phone is set to hands free, then putting it in your trunk or back seat so you won’t be tempted to peek at it while on the road.
- Another great way to save money on car insurance is to ask your agent about all the discounts that are available. A good agent should go through the available discounts at the time of quoting, but sometimes it can be hard to cover all the discounts available to you. Many times you can get a discount if you have a certain occupation, or work for a certain company. You can get discounts for safe driver classes, or being an alumnus at various universities. If you don’t ask, you may never find out about a potential discount that could save you thousands of dollars over the course of a lifetime.
- The fourth way to lower your auto insurance premiums without much hassle is to pay your bills on time. While this can be a touchy subject for most people, the fact is insurance companies are going to use a credit based insurance risk score when determining your rates. Shopping for insurance shortly after missing a bill can mean your rates will be higher. If you know your credit looks great, but it might be taking a hit soon due to loss of income or some other circumstance you would be making a smart move shopping for new insurance and locking in a rate for 12 months while you get your credit back up to par.
- Many people think stripping down their coverage is a good way to save money on auto insurance, but its not. A lot of insurance companies now offer discounts based on your previous liability limits. Someone with the state minimum limits will likely end up paying more when they change companies than someone who was carrying limits that are much higher. If you want to remove coverage, consider removing things like rental car coverage if you have a new vehicle and your dealership will provide you with the rental if you have repairs completed there. Many times new cars come with warranties for towing and rental coverage so buying them on your insurance policy can be like throwing your hard earned money away.
If you are ready to start shopping for insurance then click the request a quote link above.