When car insurance customers compare the prices they will be charged from more than one insurance company, they will find that some of these companies charge less than others for the same coverage. Sometimes, one insurance company rates will be twice those of other insurance companies. On top of that, car insurance companies that charge the lowest rates do not necessarily give the worst service, so those who are looking for low prices won抰 be sacrificing good customer service.
Not Letting Your Coverage Expire
Any length of time that drivers are not insured is seen as a huge red flag for insurance companies and they respond to it by charging high premiums. Applicants who are willing to drive without auto insurance are seen by the insurance companies as risk takers. Risk takers are the least favorable types of people that some insurance companies like to insure, so drivers who never let their insurance coverage expire before they purchase another policy will have better chances of receiving lower rates.
Pay Your Premiums All At One Time
Clients have the option to pay their premiums each month, but this is not the most cost-efficient manner of doing so. Insurance companies have to purchase paper to print their bills, purchase envelops to put the bills inside, pay for postage to mail the bills and pay the people to do all of this work. These activities cause them to have administrative costs. Clients who pay their premiums at the beginning of the policy eliminate the need for all those activities, and insurance companies will have no need to add the administrative costs to their rates.
Have a Good Credit Score
A good credit score will entitle drivers to half off of their rates with some insurance companies. The information that the credit reports can give insurance companies is beginning to be very popular with them. These reports tell them all about a driver抯 history of paying the bills on time. Those who have a history of making all of their payments on time are seen as a good risk and are charged lower rates.
Have a High Deductible
A low deductible means that the insurance company will be assuming more of the risk that a vehicle will be involved in an accident, for example. Drivers that agree to raise the deductible are assuming more of the risk which makes them look better to the insurance companies. Those who raise their deductibles from $250 to $1,000 will see their rates lowered by 25 to 40 percent. In the event of an accident, the driver will have to meet the $1,000 deductible, but they can take the savings on their premiums and set them aside for this cost.
