Five Ways to Save on Auto Insurance Rates

According to the Insurance Information Institute (III), the average person spends around $817 per year on their auto insurance. Yet auto insurance rates are all over the board, and what you pay is going to have a lot to do with the steps you take to seek out a lower rate. There are several things that you can do to try to save money on your auto insurance rates. Here are the top five ways to save:

1. Weigh deductibles. One of the areas that will influence your auto insurance rates the most, and that can save you a lot of money, lies in what deductible you select. Taking a higher deductible will save you money. Assuming more risk, whether you have a newer or old vehicle, will lower your auto insurance rates.
2. Compare rates. Even if you have been with the same insurance company for years, you should make a point of comparing rates at least once a year, if not more often. Doing so only takes minutes, and it will help ensure that you are getting the best auto insurance rates you can find. Don’t assume that big name companies offer the lowest auto insurance rates. This is an area where you have to do some comparison shopping to find the best deals.
3. Seek out discounts. Many companies offer lower auto insurance rates for those who have all their policies with them. Therefore, it’s a good idea to put your auto and home insurance policies all with one carrier. In addition to discounts for multiple policies, many offer other discounts that you may need to inquire about, such as those for being a retiree, getting good grades, or having a solid safety record.
4. Inform your carrier. Keeping your carrier informed of changes can help you save on your auto insurance rates. As a case in point, millions of people reduced the number of miles they drive per week when gas prices soared. Letting the carrier know that you are driving less may reduce your auto insurance rates.
5. Keep credit in check. Many people do not realize that insurance carriers look at credit scores. Having a low credit score can make you seem like a bigger risk to the insurance carrier, thus leading to higher auto insurance rates. Check your credit rating to ensure it’s accurate, have inaccuracies removed, and do your best to maintain a good credit score.

If you have a vehicle, you need to have auto insurance. With the economy in the condition it is in, we can all benefit from saving some money on our auto insurance rates. Being proactive and following the steps above can help put you in the driver’s seat when it comes to getting lower auto insurance rates.