If the talking lizard or the perky Flo hasn’t prompted you to shop your auto insurance yet, let me give you an additional push. There really is a good chance you can lower your premiums if you haven’t shopped rates in the past year. A great place to start is with an independent agent. You can find an independent agent at iiaba.net. You can also shop and compare rates on line at insweb.com or insurance.com.
Those who are serious about lowering the cost of their auto insurance will want to start by carefully selecting the kind of car they drive. Insurance rates can vary significantly based on the car’s safety and theft record. Edmunds.com is a good source for information on safety records. Edmunds True Cost to Own research tool is valuable for comparing models based on depreciation and historical maintenance costs.
The Insurance Information Institute provides monthly updates on car models that are most frequently targeted by auto thieves. The website also breaks down the worst cities for stolen automobiles. This is useful information should you want to consider moving and already own a vehicle on the theft list.
Another consideration in the cost of your auto premiums is your credit score. Many insurance companies are now factoring your credit score into the cost of your insurance policy. Late payments on credit cards or other financial obligations could lead to increases in your auto insurance premiums. Insurance companies feel that if you are not responsible with your money, then you are more than likely not going to be responsible on the road.
Probably the easiest way to reduce your auto premiums is to raise your deductible. Increasing a $250 collision deductible to $1,000 could reduce your premium by 20%. Make sure you have an emergency cash reserve before you change deductibles. Most planners recommend keeping three months of budgeted expenses in cash for emergencies.