There are several ways to avoid auto insurance rate increases, and most of them have to do with a lack of proactive action on the part of the vehicle owner. Here is a list of the main reasons why car owners fail to capitalize on lower insurance quotes:
This is one of the main reasons that auto insurance can suffer from rate increases without the awareness of the vehicle owner. Starting at a 3 percent increase for simple violations, infractions such as being booked for reckless driving can end up costing a policy holder more than 20 percent in rate increases on their previous policies. Safe driving is one of the best ways to keep your auto insurance premiums down, apart from being a sensible practice on its own.
Shopping for New Car Rates:
People often find that when they buy a new car, they’re loaded with ridiculously high insurance premiums. You can avoid this by getting insurance quotes on all potential vehicles that you’re considering purchasing. Some of them will have different insurance ratings because of factors like built-in safety features, etc. For example, a car with an automatic braking system (ABS) with brake assist will probably attract a lower premium than a car without, because of the smaller likelihood of the car going out of control and crashing on a wet road, for example. Similarly, there are several other factors that go into arriving at a final insurance rate for a particular vehicle, so do the research so you don’t get left in the lurch.
Periodic Insurance Shopping:
When the time comes to renew your insurance, don’t just renew with your existing provider. Rather, shop around online and look for reputed insurers with high service ratings who will be likely to give you better deals on your renewal. Companies constantly strive to attract customers away from their competitors so they will definitely have a promotional that they can give you to help you save money and bring you over to their side, so to speak. Use the market competition to your advantage and get multiple quotes before making your decision.
Policy Review at Renewal Time:
Even if you’re convinced that you’re already getting the best rates from the best possible insurance provider, be sure to review your policy for missing or unnecessary elements. For example, traffic tickets that may be out of the statute of limits, or discounts that may not have been applied. You might be able to avoid rate increases in auto insurance just by taking this simple action.
A lot of policy-holders may not realize that they get additional discounts for having several policies with the same company. For example, if your housing insurance is underwritten by the same company as your auto insurance, then you’re probably eligible for discounted rates on both. Don’t ignore this as an option to help you save money.
This is the worst thing to do: not telling your insurer about a new driver handling the car or about traffic violations that you may have. Insurers are authorized to back-charge you for any bit of missed information when it comes to calculating your future renewals or at the time of paying out on a policy, so be sure that you give them all the information that is relevant to the policy.