If you are curious as to why your car insurance is so expensive, you are not alone. As with other expenses, car insurance rates have a tendency to increase as time passes. Additionally, there are factors that are aiding in the increase of premiums.
Examples include the expenses associated with vehicle repairs, increased rates in medical care, and even shortages of materials used to repair vehicles.
Naturally, these costs will get pushed over to you. The good news is, there are tactics that you may use in order to lower the costs associated with your car insurance.
Improve Your Credit Score
Many people do not realize it, but car insurance companies do evaluate the credit histories and credit scores that submit an application for coverage. In fact, the credit score is one of the primary contributors to determining how much you will pay on your insurance premiums.
According to the Federal Trade Commission, individuals that have poor credit are more likely to file claims than those that have high credit scores.
As you move up in the tiers associated with credit score, you will experience a savings of about 17% on your premium. If you want to save money on your car insurance, get that credit score up.
Have a Good Driving Record
Another record that is evaluated by car insurance companies is your driving record. If you have speeding tickets, accidents, are issued a DUI, or other types of violations, you will pay significantly more than people the same age as you that have a clean driving record.
If you are ready to save a little money, get to work on perfecting your driving record.
Don’t Allow a Lapse in Coverage to Occur
Did you know that car insurance companies have access to your history with insurance? If you have a lapse, your premiums are sure to be higher than they would if that lapse did not happen.
It is acceptable to switch insurance companies, but never go without coverage. If something happens and you will not have a vehicle for a bit, you can get a non-owner policy until you get a new car so that you do not have a lapse on your record. This will also prevent the loss of your driver’s license.
The Deductible
The deductible of your policy is the amount of money you will have to pay towards any covered expenses before the car insurance company initiates action.
If you have a low deductible, your premiums will be higher. This is because the company will have to pay out more money in the beginning if you experience an accident. If you have a high deductible, you will pay less each month.
Car Use
Next, how often you drive your vehicle has a direct impact on your premiums. If you drive it a lot, it puts it at risk for getting into an accident and experiencing more wear and tear.
Naturally, this will increase the amount you pay for your car insurance. If you drive it less, you can get cheaper premiums.
If you are in search of cheap car insurance, contact us today at Modica Associates. We will work closely with you to find coverage that meets your needs and is perfect for your budget. Call us now to learn more: 718-855-1836