Things you can do to lower your insurance rates

Car insurance premiums are one of those things that consumers pay for but aren’t happy about. Just as paying the light bill excites no one, paying the auto insurance premium often incites grumbling from consumers. All with good reason, of course, as the cost of operating a motor vehicle is high enough without paying hundreds or thousands of dollars a year extra just to keep the car protected from an accident you may not ever have. Those rates aren’t set in stone, however. You can do some things to lower the amount you pay each year. We have previously discussed tips for auto insurance savings; here are a few more:

Change the type of car you drive - Did you just buy that Corvette or Viper that you’ve always wanted? Be prepared to pay a lot to insure it. Neither car has a steel body, and they cost a fortune to repair after an accident. That being the case, they will also cost a lot to protect from an accident. These sports cars are attractive and fun to drive, but you will pay dearly for the privilege. If you want to pay as little as possible, your best bet is to buy a car that does well in crash tests and costs as little as possible to repair. You might check the annual auto issue of Consumer Reports to see which cars.

In addition to avoiding cars that cost a lot to repair or do not hold up well in crash tests, you should also keep an eye out for a car that is not a magnet for thieves. Certain types of cars are stolen at much higher rates than others, and cars that are stolen a lot tend to have significantly higher insurance rates.  To pay as little as possible for your insurance, make sure that you have a car that isn’t on the target list of thieves. If it doesn’t get stolen, your insurance company won’t have to pay to replace it. That will save you money.

Check your credit. That’s right, check your credit. Insurance companies have discovered that there is a definite link between people who don’t take good care of their finances and people who file insurance claims. It may not make sense on the surface, but the lower your credit score, the more you will pay for premiums. The best way to fix your credit problems is to make sure that you pay your bills promptly each month and to pay them in full, when possible. The sooner you get your finances in order, the sooner your insurer will see you as less of a risk. That will soon lead to lower premiums.

There are a number of factors that go into determining rates by insurance companies. Some, like where you live, are hard to do anything about. Others, such as the kind of vehicle you drive, are easier to change. Talk to your agent if you have any questions. He or she may have some further suggestions for you as to how you might save more money.

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