3 Tips For Saving On Auto Insurance

Posted on: 23 May 2019

If you plan on owning a vehicle, personal auto insurance is a must throughout much of the country. In fact, there are only two states, New Hampshire and Virginia, where auto insurance is not a requirement. Even if you live in these states, you will still want auto insurance in case of an accident. While insurance does come in handy if you are in an accident, it can be a challenge to find an affordable policy. Here are three tips for those who are looking to save on auto insurance.

Improve Your Credit Score

One thing that many are not aware of is that your credit score can have an impact on your auto insurance rates. Taking steps to improve your credit score can actually mean lower auto insurance premiums. More than 90 percent of auto insurance companies take your credit score into account when determining your rates. A few ways to improve your score include paying your bills on time and paying off high-interest debt. If you are looking for a quick way to improve your score, take a look at your credit report and look for mistakes. Correcting mistakes can lead a higher score in little time.

Shop Around

One of the easiest ways to save on your personal auto insurance is through shopping around. Looking at multiple policies will help you find the amount of coverage you need for a price you can afford. Getting quotes from multiple companies online takes little time and can mean big savings. Just by shopping around you can save around $417 per year on auto insurance. Even if you already have insurance and are happy with your current policy, looking at other policies every few years is a good idea. Sometimes a change in coverage can mean more money in your pocket.

Consider Your Policy

If you are looking to save on auto insurance, you may want to take a close look at your policy itself. Making a few changes can mean paying less. A higher deductible can mean big savings each year. Raising your deductible from $500 to $1,000 can save you up to 9 percent on your premiums. The age of your vehicle can also play a role. Older cars may not need comprehensive coverage. Your policy may also have built in discounts that you can take advantage of.

When it comes to saving on personal auto insurance, there are a few options that you may want to consider. Improving your credit score can have an impact on how much you pay. Shopping around can also mean big savings. You may also want to consider your current policy and look for ways to save.