Costs are rising and everyone is looking for ways to save money, including auto insurance savings. Who doesn’t love savings when it comes to important things in life? While shopping for Auto Insurance is never a fun process, we’ve compiled some easy tips and tricks to help you save while making the process less stressful.
Safe Driving Impacting your Premiums
Safe driving is an important factor when you are looking to save on your monthly payments. Your driving record can determine your monthly premium rate. On average, insurance companies look at your driving record over the past three to five years. This includes any traffic violations, reckless driving, accidents, and DUIs. The more points you have on your record, the higher the risk is for auto insurance companies. This can be more costly for the customer.
So, whenever you are involved in an accident or receive points on your driver’s license, keep in mind this stays on your record for approximately seven years. Consider taking a defensive driving course or asking your agent how to lower your premium after an accident.
Some companies also offer safe driver discounts, so the safer you drive the lower your premiums can be.
Bundling Home and Auto Insurance
Another great way to save on auto insurance is to bundle home/renters and auto. This can help you manage your different payments to consolidate them into one. NerdWallet shows examples of the 10 largest auto insurance companies that offer multipolicy discounts. Discounts may vary but bundling can ultimately save you some money in the long run. Make sure to always shop around so you can get the best rate, as pricing can change each year.
Credit Score and History
Credit scores are an important factor in a lot of decisions we make financially. With auto insurance, it can affect your monthly premium amount. If your credit score is lower, insurance companies will view this as a red flag, and may charge higher premiums for coverage, deeming you a higher risk.
For some helpful tips on maintaining good credit and maximizing your credit score, check out these 3 Credit Mistakes to avoid.
Compare Insurance Policies with a Personal Shopper
While there’s a number of steps policyholders can take to reduce insurance rates, it’s worth consulting an expert who can shop rates and uncover additional savings. Michigan First Insurance Agency can provide you with your own personal insurance shopper to help you find the best rates. Our agents do all the research for you, saving time and limiting the hassle of multiple insurance companies calling to gain your business. Follow some of these tips and start saving today!