There are numerous factors that go into your auto insurance rate. Maybe you just experienced an increase in your auto insurance premium or feel that you’re paying too much for car insurance. Here are 3 factors that will help you find cheap auto insurance and teach you how to save money on your auto insurance:
Maintain good credit to save on auto insurance – credit is a factor with nearly every auto insurance company because they have found that people with good credit file less claims. Therefore, people who have excellent credit scores tend to get charged lower premiums. Why? If you pay monthly, most insurance companies credit you the insurance up front for the year and then ask you to pay them back in monthly, interest-bearing installments. And, as you know, anything that bears interest is a loan. Your credit score is an indication of your overall likelihood of paying back the loan, so insurance companies take this into account when you apply for auto insutance. In short, If your credit score is good, they will consider you to be low risk, and the interest on your premiums will go down. If your score is weak, you’ll pay more.
This brings us to the 2nd point…
Don’t let your insurance lapse – because insurance is required by the State of Colorado, you are penalized if there is a gap in coverage. The longer the gap, the greater the penalty. Make sure you maintain continuous insurance to give yourself the best insurance rate.
Bundle your insurance – One of the ways to save on auto insurance is to bundle your insurance with other types of insurance that you may have taken out with the same provider.you will likely get a discount on your auto insurance if you combine all of your insurance policies. Even if you only have renters or life insurance, see if your insurance agent will give you a multi-line discount on your car insurance. Insurers want to capture as much business as possible, and if they can get you to sign up for multiple products (that you actually want and need), they’re often willing to provide you with substantial discounts on individual premiums.
Choose a car with low insurance costs – Reducing your car insurance premium also depends on the car you buy. Insurers know that some cars are more likely to be stolen than others either because they’re more valuable or they’re an easier target for thieves. You can save money on your auto insurance premiums ahead of time by buying a car that is least likely to be stolen.
Reduce your deductible for cheap auto insurance – If you reduce your deductible, then your insurance company isn’t obliged to pay out as much when you make a claim. Because of this, they are often willing to reduce your premiums. Remember, though, if you reduce your deductible, you should set more money aside, just in case you have an accident because your insurance company may not pay for your entire damages. This is something you need to talk to your auto insurance agent about before buying a cheap auto insurance policy.
Shop through local auto insurance brokers – As you are probably aware, at Denver Insurance we are your local independent insurance agents who can best represent you. There are three main advantages working with a reputable local independent insurance broker like us can save you money on auto insurance.
- Not only can we answer all of your questions about auto insurance and other kinds of insurance products, but we can get you the best quote and comparisons because we independently shop and compare 33-different insurance companies for you. Not only do we do the price shopping for you, but often we sometimes know which insurance companies are trying to capture certain market share. Meaning that depending on who your last insurance company was, could make all of the difference in how much money you save on auto insurance.
- We often get you exclusive pricing that you can only get through us because insurance companies know we are a trustworthy insurance broker. we customize the coverage for Colorado residents, allowing them to get the best insurance at the right price – no more paying excessive premiums.
- We charge NO Broker Fees! We pass the savings onto you. This is all a complimentary service to you!
Take advantage of auto insurance discounts – Some insurers offer customers “low mileage discounts.” If you don’t use your vehicle much or you can think of a way of using it less, then your insurer may offer you money off your next renewal bill. Low mileage discounts usually start at around 5,000 miles per year and below. For these type of drivers Nationwide has a new SmartMiles auto insurance program that gives customers to pay as you drive insurance. If you consider yourself a really safe driver. Then you should consider a drive tracking device or app like Safeco’s RightTrack could save you 30% in Auto Insurance. These trackers plug into your car or can be downloaded onto your smartphone to measure your driving habits and provide you with a true quote based on your driving patterns.
To learn more talk to one of our insurance agents. Our local agents are well educated on all of these great discounts and can help you find new ways to save on auto insurance, no matter your driving lifestyle. Contact Us or get a auto insurance quote and we can help you with this process.