If you receive an update from your provider about an increment in your insurance premium, you can reduce the rates by taking some few steps. When your insurance rates are going up, don’t worry yourself, these tips will help you avoid a rise in your insurance rates and get lower rates.
1. Safe Driving
Although this sounds common, so many people are ignorant of the role their driving manner plays in determining the amount they pay as premium. The tickets you have gotten and the severity of those infractions you have recorded are key factors. Avoid the tickets if you must reduce your insurance bills. Ensure you remove any ticket you have gotten from traffic school. If all you have is a single infraction, that won’t get your rates up. On the other hand, multiple incidents, especially when you are at fault, will cause your rates to jump up quickly. Hence the need for careful driving; always have safety in mind.
2. Avoid Drinking and Driving
The fastest and easiest way to boost your premiums is by obtaining a DUI. Every year, thousands of people lost their lives to alcohol-related auto crash. And this translates to huge claims being paid out to policyholders for the at-fault driver’s carelessness. If you wish to cut down your rates, then don’t drive after some drinks; even if you think you are OK. The risk is not worth taking; you may be creating an instrument for a rise in your insurance cost, as well endangering your life and those of other innocent road users. While you may have an increase in premium for DUIs for some insurers, others will terminate your coverage for the first violation. If you wish to maintain a low rate, avoid being drunk while driving.
3. Maintain a good Credit Rating
When a lot of people notice an increase in their premiums, they are confused, because they can’t trace the cause. Even after contacting their insurance providers, they are given a general response which does not resolve their confusion. This premium explosion can be traced to your credit ratings. Insurance companies take cognizance of these scores in calculating your premiums. Although some people think it is unfair, that wouldn’t stop the trend; if your credit score is low, so you should act now. Evaluate your credit score, immediately remove all wrong items and this will improve your rating. Then, you should also clear off your bills as at when due and reduce your debt profile. You will enjoy both a more robust financial wellbeing and reduced insurance rates.
4. Your residence determines your Auto Insurance Rates
Your Auto Insurance Premium is determined, among other factors, by your zip code area. If you wish to relocate, first carry out a survey for some insurance rates before you finally decide. Clearly fill in the information of your car and your Zip Code and you can have your rates in less than 5 minutes. Urban areas attract higher rates which are as a result of the greater possibility of accidents and car thefts. So, relocating from a city to a suburb might reduce your insurance rate by 10% or more.
5. Get Cheaper Quotes Online
After trying all you could to cut down your insurance rates but still to no avail, keep calm. The best thing to do now is to check online and make some comparison on different auto insurance rates. The list comprises of top competing firms with their direct rates. It is highly recommended to save money and time; do direct online shopping. A lot of policyholders have testified of saving over $500, and they are also impressed at the easy and fast procedures. Get a free custom quote now; you stand to lose nothing!