Things You Can Do To Lower Your Insurance Rates

Everyone knows that having a safe driving record, making your payments on time, and driving a safe vehicle rather than a sports model can save you money on your auto insurance. However, there are still a few things you may not know could save you money when you pay your insurance bill. Use the information below to help you reduce your rates as well as improve other areas of your life.

Work on Your Credit

It seems that your credit has an impact on everything you do now, from getting accepted for new employment to qualifying for an account at your local hardware store. You car insurance is no exception to the rule. Though it wouldn't seem that your credit rating would have anything to do with your insurance, it's one of many elements that your carrier looks at. The premise is that people who make their payments on time are more responsible and less likely to take risks on the road. Improving your credit, even in small doses, can help you with other areas of your life as well, like getting reduced mortgage rates or lower interest rates on your credit cards.

Pay in Advance

Pay your insurance bill as far in advance as you can. Some companies offer a discount for paying for your insurance further in advance than you have to. You may be able to pay up to a year at a time. For some companies this is an actual discount. Other companies may not offer a discount, but you get to skip the monthly billing fees, so you still end up paying less than you normally would.

Avoid Collisions

This might seem like the most obvious way to save on insurance, but do you really know what a collision is? Did you know there is a difference between hitting a deer and hitting a utility pole as far as your insurance company is concerned? Any accident with an inanimate object is filed under "collision," while hitting a moving animal can be filed under "comprehensive," something you're not at fault for. The idea is that you usually have the opportunity to avoid an inanimate object, while you have no control over an animate one.  

Don't forget to take advantage of discounts that may not be automatically applied. If you are in school, you could qualify for a good student discount. If you pay your insurance bill on time without ever letting it lapse, you may be entitled to a discount from the company you renew with. Even doing things like adding extra safety features to your vehicle can result in lower payments. Finally, don't forget to periodically check with other insurance companies to see where you might get the best deal when you renew.

For more information, contact Ahlquist Insurance or a similar company.