No one wants to pay more than necessary to insure their car. But there are many ways to get lower insurance rates on your auto or motorcycle insurance. If you ever had to carry SR22 insurance or FR44 insurance, the suggestions outlined below can lower your auto insurance costs later.
Improve your credit score.
A few states do not allow using a person’s credit history to set rates, but most will check your credit score before providing a quote. When insurance companies consider credit history, the better your credit score is, the lower your insurance rate.
Insurance claims affect your insurance rate.
Your driving record influences how much you pay for auto insurance. Individuals with many car insurance claims cost an insurance company more than those with few or none. Insurance companies reward drivers with lower insurance premiums when they have not filed claims within a specific time. Generally, the more points (citations for accidents or other driving violations) an individual has on their record, the higher their insurance costs are. Maintaining a good driving record helps avoid unwanted premium increases. When points drop off your record, you’ll get lower insurance rates at renewal.
There are benefits to having continuous insurance coverage.
Maintain your insurance policy without a lapse of coverage for at least 12 months to build a good credit history and save money with lower insurance rates. You may not know that insurance companies can consider your credit rating when determining your insurance rate. The belief is that people who care about their credit rating also tend to care about their driving habits.
Get lower insurance rates with longer-term premiums.
Paying your insurance premiums in full for six or twelve months allows you to receive the most discount regardless of the insurance company. If you can’t pay the balance in full every six months, the next best choice is to set up automatic bank drafts (EFT). EFT saves you $5 per month on average compared to a physical payment option.
Higher vs. lower deductibles.
When you have a full-coverage policy, you’ll usually get lower insurance rates by choosing a higher deductible. A deductible is an amount you pay in the event of an accident or other claim before your insurance coverage kicks in. If you have a good driving record, it may benefit you to choose a higher deductible. Talk with your insurance agent to see if the deductible you could live with would result in a significant enough reduction of your insurance premiums.
Consider less coverage for lower insurance rates.
Suppose you have an older vehicle or one that’s not in good shape. In that case, you might consider dropping comprehensive and collision coverage. Depending on the vehicle’s age and condition and your driving record, the insurance company might consider it a total loss. Have a conversation with your insurance agent to see if they advise dropping any part of your insurance coverage to get lower insurance rates.
Take advantage of insurance discounts.
Ask your insurance agent about any discounts you might qualify for, such as employee, good student, military, or other discounts. Many insurance companies offer multiple vehicle or multiple policy discounts. You may get lower insurance rates if you own multiple vehicles by insuring all your cars with the same company. Some insurance companies offer a discount on your auto insurance if you also insure your home with that company.
Shop insurance rates.
It’s a good idea to periodically check if you can get a lower rate from another company. When you first get car insurance or before your existing policy renews, get competitive auto insurance quotes from reputable insurance companies. Be sure that each quote includes the same coverage options.
Drive less.
Can you reduce how much you’re on the road? Insurance premiums usually increase with higher annual mileage. See if you qualify for a lower rate by lowering your annual mileage. If high annual mileage affects your car insurance rate, consider a move that takes you closer to your job or take mass transit part of the time.
Buy an older or less expensive vehicle.
Consider downsizing your insurance rate by downsizing your vehicle. Insuring large SUVs, new cars, and luxury vehicles costs more. Slightly older, smaller, less expensive vehicles for everyday commutes will save you money. Talk with your insurance agent about makes and models to consider buying. Then, decide which will result in lower insurance rates that meet your needs.
Take a driver safety course to lower your insurance rate.
Some insurance companies offer reduced premiums if you complete an approved or accredited defensive driving or accident prevention course. Some states provide such classes, and others may reduce the points on a driver’s record after completing one. Check with your state DMV and insurance company before enrolling in these courses.
Install a vehicle safety device if appropriate.
You may be able to lower your premiums by installing an anti-theft device in your vehicle. Especially if you live, work, or need to park in an area at higher risk for auto theft. Talk with your agent, who can recommend anti-theft systems to lower your insurance premium when installed. Ask if the risk of theft balances with the expense of the device.
How SR22 insurance affects your insurance rate:
You may experience license suspension after a traffic violation or legal judgment at some point in your driving history. If that happens, you’ll have to buy SR22 or FR44 insurance for a specific time. SR22 and FR44 insurance cost more than standard auto insurance. After you complete the SR22 / FR44 requirement, you can return to standard auto insurance rates.
For additional information related to lower insurance rates on SR22 and FR44 insurance, visit these pages on our website:
- Cheap Affordable SR22 Insurance
- How SR22 insurance costs are determined
- Cheap Non-Owners SR22 Insurance
- Avoiding Accidents in Winter Weather
UltraCar Insurance has low rates on SR22, FR44, and motorcycle insurance for car owners and non-owners. Call us or start an online car or motorcycle insurance quote today!
