You receive the dreaded letter in the mail: your car insurance carrier is increasing your premium! It might be a small increase – five dollars or so – or your rates might jump by $100 or more. Whatever the case, the last thing you want is to lose a great deal on car insurance, so how do you avoid increases?
1- Drive Defensively
One of the easiest ways to avoid increases in car insurance is to drive safely and defensively. Car accidents and moving violations will usually result in an increase in car insurance premiums, so try to stay out of harm’s way. Stick to the hurry limit and be vigilant behind the wheel.
The ways in which car insurance companies handle accidents and driving violations depends on where you live and what company you use, according to Insurance.com. Some states, for example, are “no-fault” states in terms of accidents, which means your culpability will not affect increases in car insurance.
2- Keep Your Car Garaged
Another factor that might cause increases in car insurance is where you keep your vehicle when it isn’t in use. Cars parked on the street, in driveways or in parking lots are at greater risk for accidents and theft. If, however, you keep your car in a garage, you will be able to maintain lower rates.
You might also experience increases in car insurance if you get a job that is farther away from your home, or if you car is not garaged during the day while you are at work. If you change jobs, you might want to think about a Park and Ride program or taking public transportation.
3- Pay Your Bills
In addition to driving history and statistics, car insurance companies also take into account your credit history. Those who default on loans and forget to pay their bills will have a lower credit score, and will therefore be considered a higher risk for insurance.
If you want to avoid increases in car insurance, pay your bills on time and retain track of your loans and lines of credit. This will withhold insurance companies from hiking up your premiums for the next billing cycle.
4- Drive the Same Car
Some cars are more expensive to insure than others. Newer vehicles, expensive vehicles, imports and luxury vehicles will have higher car insurance premiums attached, so you’ll want to stay away from those if you want to avoid increases in car insurance.
This does not mean you must continue driving the same car for the next fifty years. However, try to purchase moderately-priced vehicles with good safety ratings and fewer bells and whistles.
5- Don’t File Claims
Just because you’ve been in an accident does not mean you have to file an insurance claim. To avoid increases in car insurance, pay for the repair of limited dings and scratches out of pocket, especially if it will cost less than your deductible.
Keep in mind, though, that you might be required to report any accident to your insurance company.
There are plenty of ways to avoid increases in car insurance, and most are well-liked sense. Stop out of trouble and pay your bills on time, and you will probably be able to retain a low car insurance rate.
Sources:
Insurance.com, Will an Accident or Ticket Increase My Car Insurance Rate?
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