Stop! Here's How to Prevent an Increase in Your Car Insurance
Carrying current and adequate car insurance is a must for anyone on the road. Depending on the type of vehicle being insured, the driving record of the insured, and other contributing factors car insurance premiums can sometimes be on the higher end; because of this, it’s crucial that drivers utilize any opportunity to reduce their rates or prevent any premium price increases.
Not all increases by insurance carriers are preventable, however, many changes can be avoided. See below for tips on how to prevent an increase in your car insurance.
Be Honest with Your Insurance Company
It’s never a good idea to lie to your insurer. Anything you aren’t honest about may catch up to you in the form of policy cancellations, penalties/fees, rate increases, or back-charges of fees. After providing your insurer with all applicable information, if you aren’t happy with their rates, it’s probably time to shop around for a new provider.
Avoid Tickets or Bad Driving
One of the top reasons drivers will see their car insurance rates go up is irresponsible driving, tickets, or accidents. Accidents are sometimes unavoidable, but speeding tickets and citations for not following road rules are. If keeping your insurance payments low is important, slow down!
No Car Modifications
Insurance companies analyze a ton of different factors into the ending rate result. The higher a risk they deem you or the car you’re driving, the higher your insurance premium cost will be. When you add after-factory modifications to your vehicle, such as turbochargers, additional window tinting, alloy wheels, or racing kits, the insurance company may see you as an increased risk and raise your insurance rates.
Utilize “Safe Driving” Tools
Companies like Progressive have made available certain safe driving tools that can help reduce your costs based on your driving. Contacting your insurer, or a provider who has a similar program can get you started with either a plug-in device to monitor your driving or with some companies you can simply download a phone app. Mainly, if you’re a safe driver, your rates can see a decrease in premium cost. Beware, however, as this can have the opposite desired effect and increase your rates if you are an overly aggressive or poor driver.
Shop Around Regularly
With things like car insurance, it pays to shop around regularly for the best rates. Rates go up and down continuously in this particular market, but typically your insurer will not change your prices to match the current best rates. Being vigilant with the car insurance premium that you’re paying can definitely pay off if you check around with competing companies several times per year. Even shopping your current insurer can help as they may be able to offer you new discounts that were not applied to your plan previously.
Check Rates with a New Car Purchase
Your vehicle insurance premium will change any time you purchase a new car. If you are considering a new car purchase, shop around with different insurance companies first to make sure you are getting the best rate pricing on your new car. If you find that the rates are higher with the other insurance companies as well as your current one, you may want to consider purchasing a different vehicle.
Accurately Provide Mileage
It can pay to make sure you are giving your insurance company the right number of yearly miles you drive or expect to drive. If you overestimate in this area, you run the risk of paying a higher premium. Take the time to estimate as carefully as possible the number of miles you plan on driving in your vehicle per year.