Does it seem as though your car insurance premium isn't getting any lower? The truth is there are a number of reasons why insurance is so high. Whether it's the car you drive or your credit score, your premiums may be higher than you want. Let's take a closer look at what the problem may be and how you can save money.
1. You Chose the Wrong Car
As bad as it sounds, auto insurance companies usually charge more when you drive a cheap car. Cars that are more prone to damage and passenger injury carry higher premiums. There are also cars that have higher insurance rates because they are more likely to be stolen. Take the time to research your car to see if the insurance rates are an issue. When you buy your next car, consider this research so you get a lower rate.
2. Your Driving Record Is Poor
If you, or someone on your policy, is prone to accidents or tickets, you're going to have high premiums. If possible, remove problem drivers from the policy and call your insurance agency to see if the rates can be lowered. If you're the problem driver, take a class to improve your driving skills and become a better driver. The longer you go without an accident, the better your rates can become.
3. Your Credit Score Is Low
Your credit score plays a bit part in your rate. If your score is less than perfect, do everything you can to improve your score. Sign up with a program like Equifax so that you can manage your score and get tips for improving your score. The better your score, the more likely your premiums to come down.
4. You're Loyal
Loyalty isn't always a good thing. You may have been with your company for a decade and not seen your prices go down at all. Give your insurance company the benefit of the doubt and give them a chance to lower your rates by calling them. Remind them that you've been a customer for years, have made your payments on time, and haven't seen your rates go down. If they refuse to change your rate, it's time to start shopping for another provider.
Car insurance premiums can vary widely from company to company. However, there are some issues that are going to increase your rates no matter where you go. Take the time to make the changes needed to lower your premiums.
What about you? How have you lowered your car insurance premiums?
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