When you apply for auto insurance your insurer will use your risk rate to determine your cost. Those with a bad driving record pose a higher risk to insurers. So they will have to pay more for their coverage. If you worry about how much a bad record will cost, you are not alone. Consider taking the following steps to rein in and control your policy prices….
Buy Only the Coverage You Need
If your car is paid off you may not need collision or comprehensive coverage. Do not drop your Liability insurance. Liability insurance will protect you in the event you cause damage to others. Ask your agent to help you delete coverage which might not be needed in your situation.
Ask About Discounts
Even if you have a bad record you might be able to still get savings. If you drive less than 10,000 miles per year (the average number of miles insurance companies assume people drive), you could qualify for a discount. Also, your insurance provider may lower your rate if you’ve been a long-term customer. Your choices may depend on the insurer’s offerings.
Ask If Your Insurer Offers a Safe Driving Course Discount
There are online defensive driving courses. By enrolling in a course, you will review critical practices that might make you safer in the future. This may give you short term and long term savings.
Consider Taking a Higher Deductible
If your insurance company does raise your premium, you can still lower the amount by increasing your deductible (the amount you’ll pay after you file a claim and your insurance kicks in). For example, increasing your deductible from $200 to $500 could reduce your car insurance coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more.
But before you do this, ask yourself if you’ll have the $500-$1,000 to spend if you get into another accident.
Ask About Bundling
Sometimes if you bundle your policy with another policy such as home insurance it will lower your premium.
Larger Cars/SUVs Cost More
Buying a huge SUV may sound exciting, but insuring a 5,000-pound, top-of-the-line vehicle can be more expensive than insuring a small (but safe) lower-cost commuter car. Some insurers will offer a discount if you buy a hybrid or an alternative fuel vehicle.
An accident can stay on your motor vehicle record for years, but the exact length of time varies widely by state and by the violations associated with the accident. You can find details by checking your state’s Department of Motor Vehicles website. Check to see when your driving record clears. When they clear you might see your rates decrease.
Rollins Insurance represents multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio.
Rollins Insurance is an independent insurance agency providing our clients the best prices with the most coverage possible since 2008. We represent multiple A-rated insurance companies to make sure we deliver the most competitive rate packages to our clients in Kentucky and Ohio. We find that most people are under-insured and over-paying when we meet them. We love what we do and our primary business is Personal Auto, Homeowners, and Life and Health insurance. We are a family-owned and managed business that specializes in providing needs-based insurance services.
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