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 premiums 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 claims cost an insurance company more than people with few or no claims. 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 in 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, choosing a higher deductible generally results in lower insurance rates. 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 pay 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 want to 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. If you own more than one vehicle, you may be able to get lower insurance rates 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.
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 down-sizing your vehicle. It costs more to insure large SUVs, new cars, and luxury vehicles. 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 one will result in lower insurance rates that will 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 some states may reduce the number of points on a driver’s record after completing one. Check with your state DMV and your insurance company before taking a course like this.
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 that will 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 while. SR22 and FR44 insurance cost more than standard auto insurance. After you complete the SR22 / FR44 requirement, you’ll be able to return to standard auto insurance rates.
For 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 owner and non-owner SR22, FR44, and motorcycle insurance. Call us or start an SR22 or FR44 insurance quote today!
This article was last updated on April 3rd, 2022 by UltraCar Insurance