As long as you keep your driving record clean, you’ll always get the lowest car insurance rates. That is the common misconception we all believe to be true. The fact is though, it doesn’t matter how well you drive – it all depends on how well you pay your bills. Consumer Reports has recently done a study and found out that somebody with a DWI on their record is paying a significant amount less for insurance than someone who the insurance company feels has poor credit.
Defensive driving courses will also save a boat-load of money on car insurance year over year. This too is a common misconception, as it does save you money, it is only saving you somewhere around $97 every year. Here are some tips that will save you more money on your car insurance than you think:
- Shop around. Many people sign onto one insurance company and never look back. They renew with that same company for years and years without looking at quotes from other companies. J.D. Power conducted a U.S. Insurance Shopping Study in 2014 and concluded that “Drivers who switch to a new insurer average $387 in annual savings. Take an hour out of one day of every year and get quotes from 10 other insurance companies to see how much you could save. Remember, you do not have to wait until your car insurance is up in order to switch. If you pre-paid and want to switch to a different company, your current insurance company will have to reimburse you that money.
- Check your credit report for mistakes. If there are any, have it corrected and ask the insurance companies to score you again.
- Start shopping around a month or more before your policy expires, a gap in coverage can cost you.
- Make sure you’re asking the insurance companies what discounts you qualify for, a majority of life changing events will qualify you for certain discounts (getting married, changing professions, etc.)
So as you should continue to drive safely and keep your record clean, also keep in mind that there are other ways to keeping your car insurance rate low.
