If you live in Florida, then odds are good you’ve noticed your car insurance rates increasing over the past few years. Fortunately, there are a few ways to get your car insurance rates lower. Try these suggestions to save hundreds of dollars a year on your insurance bill.
- Review your coverage terms. There are several ways to save on your auto insurance simply by changing the terms of your coverage. Start by asking about raising your deductible. If you have enough money in savings, a higher deductible is often a good way to save a few dollars, and the odds are it won’t affect you very much if you have to make a claim. Because car repairs cost so much more today than they did several years ago, it’s very likely that you will only make a claim in the event of a serious accident.
While you’re reviewing your policy, also look at the type of coverage you have and your individual coverage terms. It may be possible to save money by reducing your coverage limits on items such as medical care. If you have other insurance, such as a good health insurance policy, it is possible that this other policy will provide the coverage you need, allowing you to save some money by eliminating duplicate coverage.
Be sure to ask your agent if these changes are a good idea before making a decision. Your agent will be able to advise you on what you should keep or increase, and what you can drop.
- Shop carefully for your next car. If you’re thinking of trading in your car, take the time to call your insurance agent before you make a decision on what to buy. There can be huge differences between the cost to insure various vehicles. Contrary to popular belief, there is not always a direct correlation between the cost of a vehicle and the amount it will cost to insure it. Factors such as the weight of the vehicle, overall safety, crash record, and even the estimated repair cost will all effect how much it will cost to insure a new car.
- Look for bundle deals. Purchasing more than one policy from the same agency can help to reduce the cost of both policies. Most commonly, people will choose to bundle their home and auto insurance policies, but it is also possible to bundle other types of coverage as well.
- Improve your credit score. Few people realize that auto insurance agencies can use your credit score to determine your overall risk of causing an accident. While it may seem as if the two factors are not related, credit score is one of several factors that agencies use to assess risk.
While auto insurance companies don’t have to tell you what score you need to get a good rate, analysis of the industry has shown that if you can keep your credit score above 720, you’ll likely qualify for the best rates. In addition to saving money on your insurance, a higher credit score will also help you to save money in many other areas of your finances.
- Ask about discounts. Many customers simply assume that their agent will automatically apply any discounts that they qualify for. While a good agent will look for discounts, they can’t look for things they don’t know about. Tell your agent if your driving age children are on the honor roll, if you rarely use a vehicle, have your car garaged most of the time, or if you have added safety or security features. There are a lot of discounts that are dependent on where you live, where you park at night, and many other factors.
To make sure you’re taking advantage of all of these discounts, be sure to check in with your agent at least once a year and after any major life changes such as a new job or marriage. For more information or any questions, contact us today.