Paying Less on Insurance Made Easy by Honest Car Dealer

Tips on Lowering Your Insurance Premium from Honest Car Dealer

auto technicianIt may seem that there’s little you can do about the cost of your monthly insurance premium. Rest assured, there are a few things you can do to lower it, and knowledge about how this rate is set is the key to doing so. Auto Insurance is required in many states, but it is a pretty good idea even when it is not. It works to not only cover you when you are in an accident but also the other party when you are at fault. Getting the rate that you deserve is the key to saving the most money while getting the coverage that you need.

Some Tips to Lower Rates

  • Drive more carefully. Insurance companies see drivers with a lot of speeding tickets as higher risk, meaning that, according to their data, you’re more like to get into an accident and file a claim. Exchange your lead foot for a lighter one and follow the speed limit.
  • Choose a car wisely. The car you drive affects your rate. Typically, a less-expensive car has cheaper rates than a more expensive one. Edmunds offers a True Cost to Own tool that factors in a number of components, including insurance premiums, and gives you what the total price to drive the vehicle would be over a 5-year period. If you’re looking at a used vehicle purchase, know that mileage factors in, too, because a vehicle with more miles on the odometer is at a higher risk for failure.
  • Change your coverage. Look at what you’re paying for each month and see if everything is necessary. If you’re okay paying a higher deductible, you might be able to lower your rates.
  • Raise your credit score. Some companies factor in credit scores when determining rates, labeling poorer credit as higher risk. Many states are actually creating laws to counter this practice.

Hopefully this will help you get on your way to getting a lower monthly premium. The Honest Car Dealer offers great tips on saving money on vehicle purchases and insurance, as well as how to spot maintenance problems and what to do about them.


September 23, 2012 by Jamie Rettig