When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.
Car insurance can be pricey. The annual average cost for car insurance is right at $907.38. Some drivers end up paying a lot more due to factors such as age, driving history, and even credit score. For those with factors that make car insurance more expensive than what the average driver pays, saving money is important. Luckily there are a few things that can help drivers save on their car insurance. Here are three things that drivers can do that may save them money on their car insurance costs.
Driving Less
One thing that many drivers do not realize is that they may be able to get a discount on their car insurance if they do not drive a lot of miles in a year. The more a person drives, the higher the chance is that they will get into an accident. Car insurance companies consider this when determining car insurance rates. Being a low mileage driver means that there is less of a chance that a claim will be made. Most car insurance companies consider the low mileage cap to be somewhere in between 7,500 and 15,000 miles per year. This discount may be an option for drivers with very short commutes or who work from home.
Checking Credit Scores
Credit scores can have a big impact on a variety of financial decisions. A low credit score can make it difficult to get loans and credit. What many don't know is that it can also make it more difficult to get a good rate on car insurance. Around 90 percent of car insurance companies use credit scores when determining car insurance rates for a driver. Better credit usually means better rates. Drivers should check their credit scores in order to make sure they are correct. If a driver has taken steps to improve their credit score, notifying the car insurance company can lead to a better rate.
Understanding the Impact of Car Make and Model
A car's make and model can have a huge impact on insurance rates. Cars that have higher rates of theft and higher rates of accidents are often more expensive to insure. High end sports cars will typically have higher rates than affordable sedans. Older cars are also typically less expensive to insure. Drivers may want to consider trading in their current vehicle if their insurance costs are prohibitively high.
Saving money on car insurance can be difficult. Certain things such as age and driving records can't be changed. However, there are a few things that may lower rates. Driving less can qualify some drivers for a low mileage discount. Checking a credit score or updating it with the insurance company may also lead to lower rates. Car make and model can also have a big impact on car insurance premiums. Trading in a high risk vehicle for one that is less risky according to car insurance standards can save a lot of money.
Share27 March 2017
