As the people of the world embrace all the new innovative technology, car manufacturers are creating state-of-the-art vehicles that rely more upon electricity than fuel. This design saves the environment and decreases your footprints on Earth. Along with that, though, comes a higher cost of repairing and replacing them.
For the people in the auto insurance industry, the costs associated with claims have skyrocketed, so instead of the expenses of operating going down, they are hitting all-time highs. This leads to an increase in the premiums passed down to you, the consumer, even if you are not one of the many driving around in the latest technology.
The only way to combat this increase in premiums is to find ways to cut the risks down for the insurance carrier, which will decrease the cost of the premiums being passed on to you. Let’s take a look at some great tips to reduce your insurance premiums during renewal so you can cut your out-of-pocket expenses down as low as possible.
- Driving Record – One of the most significant aspects of driving that can increase your premiums is your record. The better you drive, the lower your costs will be. This not only includes accidents but citations as well.
- Credit Report – You may not think your credit score has anything to do with your auto insurance, but you would be wrong. The better the score is, the lower your premiums will be because your risk number drops.
- Pay Yearly – Almost every insurance company will offer you the chance to pay your premiums by the month. This is not a good idea because they will tack on extra service fees to do so, which means you will pay more in the end. Plus, when paying it by the year, your rates will be locked in until you have to renew them again.
- Compare Carrier – This is not a new way to lower car insurance premiums, but it is one of the best. Don’t ever feel obligated to stick with the carrier you are with. In fact, when you find a better deal, bring it up to them and see how much they want your business. If they like getting your cash, they will work something out with you that benefits you both.
- Defensive Driving Course – Take a defensive driving course to show the insurance carriers that you are serious about driving safely. It may not have a factor on the price for some agents, but others may give you a decent discount.
- Insurance Carrier Tracking – Almost all car insurance carriers have a device or an app on your smartphone that can keep track of your driving habits. This is a great way to decrease your premiums if you are a decent driver. If not, do not opt for this choice because it will backfire on you.
- Deductible – Perhaps the easiest way to save on your premiums when renewing is to increase the deductible you set. The higher this number is, the lower your premiums will be. Take great care when doing this, though, because it means you will have to dig more cash out of your pocket if you ever have to file a claim.
What it all boils down to are discipline and safety. If you drive safely, it will show on your history, and vice versa. It is never a good idea to change auto insurance carriers if you have a wreck or two because the premium amounts may shoot up after the first month, so start from an early age and drive safe.
If you are not familiar with defensive driving, it would be a good thing for you to take a class, but if you cannot, you can always go online and watch some information about it on YouTube. It is up to you to get good driver discounts, so be aware of what you are doing and avoid breaking any laws.