That’s scary to even think about.
I’ve also learned how the auto insurance business works. And what to do in order to keep a premium low. Because nobody wants to pay more for auto insurance than they did for their car. Am I right?
Here’s how I keep my low car insurance premium and how you can too!
Avoid Traffic Violations
My number one tip on the list is the most obvious and yet, the most ignored. If you want to keep your insurance premium in check then don’t get tickets. It’s not that hard to do!
Be a cautious driver and don’t go faster than the speed limit. Some pretty easy advice to follow.
Avoid Sports Cars and Large Trucks
Sports cars are definitely the most expensive to insure. Right after that comes large trucks.
One of my past clients was around 20 years old and had just bought a Pontiac G-6. While he was paying around $100 per month for his old clunker (he had traffic violations too) the G-6 shot his bill up to $350 per MONTH. I pay less than that for full coverage every six months.
Before you buy a new car call your agent and get a quote. I’ll say it again, you don’t want your insurance to cost you more than your car. Do your homework before making a car purchase!
Make Sure Your Teenage Driver Gets Good Grades
Adding teenage drivers to a car insurance policy is the worst. I feel bad for families who see their premium double by adding their teenage daughter or triple by adding their teenage son. (Yes, it costs more to insurance males than it does females.)
But many companies give a hefty discount for teenage drivers who have a high GPA.
If you’re going to be adding a teenage driver to your policy start working on his or her GPA at least one report card prior. Trust me, you’re going to need that discount.
Keep Your Credit Score Up
I worked as an independent agent with seven different insurance companies. And every single company I worked with pulled insurance scores (credit scores and insurance history combined.)
If you have a low credit score you’ll pay substantially more for insurance than someone with high credit.
Only File Claims for Emergencies
Every claim you file is a ding against you and will only make your premium rise.
Only use your insurance for emergencies! If you total your car then by all means get your check (assuming you have full coverage, of course.) But if you’re only going to get $50 paid after your deductible do not file that claim. I repeat: if you’re only going to get $50 do. not. file. a. claim. You’ll pay that $50 back plus some in future insurance premiums.
It’s not worth it.
And remember, claims stay on your record for 3-5 years and most are equally weighted. That means it doesn’t matter if you totaled your car or had a minor ding – the insurance company views them the same.
A claim, is a claim, is a claim.
Shop Around Every 2-3 Years
Your premium will go up every 2-3 years. That’s just how it works.
By staying loyal to one insurance company all of your life you’re only costing yourself money. You see, when you switch companies you get really good rates because the new company is trying to win your business. But after a couple of years with the same company you’ll see an increase.
When you see that increase start getting new quotes – shopping around for the best insurance rates can shave a couple of hundred off your annual bills.
Conclusion
Getting low rates on auto insurance isn’t rocket science. Keep your credit high, your traffic violations and claims low, drive a safe car and you’ll have no problem at all scoring a good deal.