3 Simple Ways to Keep Your Auto Insurance Rates in Check
If you own a vehicle, insurance is one of the necessary expenses that you have to budget for. Depending on where you live, monthly insurance premiums can rival monthly car payments. Any way that you can save on your insurance premium can help your overall yearly budget. By being active, you can easily help keep your insurance premium under control.
1. Always Check Rates
Even if you love your insurance company, you should always shop around. At least once a year, you should get online and get auto insurance quotes from a couple of different companies. Although most insurance companies look at information such as your age, driving record, vehicle, and where you live to figure out your insurance rate, each insurance company has their own algorithm for figuring out insurance rates. One company could offer a drastically more affordable insurance premium than another insurance company.
Don't let loyalty bind you to your insurance company. If you really like your insurance company and you get offered a better rate by a competitor, you can always use that information to see if your insurance company will match their offer. Matching offers can help you save money and ensure that you are getting the best rates possible.
2. Check Your Information
Next, at least once a year, check your car information. All the information that your insurance company collects is information that they use to determine your rates. For example, if you previously were driving your vehicle 10,000 miles a year, and now you are only driving your vehicle 3,000 miles a year, let your insurance company know. Driving fewer miles can actually reduce your insurance premium because you are spending less time on the road and therefore are inherently less of a risk.
3. Get a Telemeter Installed
Another way to reduce your insurance is to get a telemeter installed. It will track your driving mileage and behavior for a couple of months. Generally, after tracking your driving behavior, your car insurance will go down. Just make sure that you drive on your best behavior while you have the telemeter installed. The meter will measure how many miles you drive, what time of day you drive, and how often you do city driving versus freeway driving. All of that information will be used to create a more detailed driving profile, which should help you save money.
Reduce the necessary expense of auto insurance by always checking insurance rates at least once a year. Be sure to check your information with your auto insurance company to make sure it is up to date; little changes in your information could impact your auto rates. Try out a telemeter to further lower your insurance rate. Don't just accept your insurance rate for what it is—take active steps to change it.