The Top 3 Ways to Save Money On Auto Insurance
The cost of auto insurance is fairly standard across insurance providers and states. However, it can still vary widely. The average annual cost of auto insurance is about $1,200 per year, but costs range from as low as $600 to almost $3,000 in some states. If you are driving a brand new car with an MSRP of over $40k or if you have several factors that will increase your risk of accident or theft, your rates could be even higher than that. Auto insurance premiums are calculated based on several different variables and can change significantly if any of these factors change. Here are some tips on how to save money on auto insurance by reducing your risk profile and choosing the right company, policy type, and deductible.
Check Your Credit Report
Credit scores are used by insurance companies to determine risk. If you have a low credit score, your premiums will likely be higher than someone with a high score. In fact, about 20% of people who take out auto insurance are declined coverage because of their credit score. While it’s possible to get a quote with a low credit score, you are likely to pay more for the policy than someone with a higher score. Credit scoring is used to determine an individual’s future risk, not past risk like driving history. So, if you are someone who has had a low credit score in the past but has now worked to improve it, this will be reflected. Your credit score will remain on your record for up to 7 years, so if you’re someone who has had low credit in the past and has now worked to improve it, it may be helpful to ask your insurance company if they would be willing to give you a break on your premiums as a result.
Rotate Your Tires and Have Your Car Serviced
Having your tires rotated and properly maintained can reduce your risk of accidents and improve the lifespan of your tires. Having your car serviced regularly can also reduce the risk of accidents and improve the lifespan of your car. Using these two services can save you money on both auto insurance and repairs. You can expect to pay about $50-$80 for an oil change and tire rotation at a shop, or $50-$100 to have a shop change your oil and rotate your tires. Replacing your tires with new ones will cost between $50-$1,000 depending on the model of your car, make and model of tire, brand, and type of tire. Having your car serviced will usually cost between $50-$100. You can get your tires rotated at most auto parts stores or at a tire shop. Your car’s manual will tell you when it needs an oil change.
Avoid Driving At Certain Times
Driving at certain times is more dangerous than others. The most dangerous times to drive are during the morning and evening rush hour. Avoid driving during these times if possible to reduce the risk of being in a car accident. You can also reduce the risk of being in a car accident by avoiding driving on interstates and highways on Friday and Saturday nights. It’s also recommended that you avoid driving in inclement weather. If you don’t have to be out driving in an unsafe weather situation, try to find a way to stay home. If you have to drive, try to avoid interstates and highways and drive at a slower pace to increase your safety.
Make Sure You Are Up-to-date on Payments and Have No Previous Accidents
Your auto insurance rates will be higher if you have a poor credit score or if you have been making payments late or not making them at all. You can expect to pay as much as 25% more for your insurance if your payments are not up-to-date. Make sure you are paying all of your bills on time and paying off any previous debts. Also, make sure that you have not been in any previous accidents. If you have had an accident, you will likely have to purchase insurance as a high risk driver.
Change your car’s appearance
High-risk drivers can reduce their risk by making minor changes to their vehicle. Adding a car alarm, window tinting, or installing a tracking device can reduce your risk by making it less desirable for thieves. You can expect to pay about $100 for each of these options. You can also reduce your risk by changing the appearance of your car, although this will have a much smaller impact than installing security features. Driving a car that is less expensive and less flashy than the average car in your area can help you avoid accidents. Most car insurance companies will recommend driving a car that is 10 years old or less. Newer models tend to be more expensive to insure. If your car is worth less than $10,000, you can save money on insurance by purchasing a salvage title. Salvage titles are slightly cheaper because you will have to pay less for car repairs after an accident.
Auto insurance is important, and the more you can do to reduce your risk, the less you will pay for coverage. By following these tips, you can reduce your risk and save money on auto insurance by as much as 40%. Remember that these tips only apply to people who already have insurance. If you do not have auto insurance and need to save money, you can always explore different companies and see which one offers the best deal. Keep in mind that the cost of auto insurance varies widely. You may be able to save a significant amount just by switching companies or increasing your deductibles.