Insurance: Keeping Your Rates Low(Er)

If you are like many Americans, your life only works when you have a car. Keeping a car is expensive enough when you only have payments to make. When you add the expense of insurance, things can get out of hand. The average cost of insurance in 2014 was over $900 per year, a significant investment. To cut your vehicle expenses, you need to lower your insurance rates as much as possible. 

Improve Your Credit Rating

Unfortunately, bargaining with your insurance agent for lower premiums is unlikely to work. One concrete step you can take to help lessen your bill is to improve your credit rating. Approximately 92% of insurers take your credit rating into account as well as considering your driving history. Although clearing up credit problems can take some time, you should gradually see a reduction in your payments. You may be able to speed up this process by regularly checking your credit report and taking steps to remove inaccurate information. This process will help you in all aspects of your financial life. 

Adjust Your Coverage

Evaluate your coverage needs every year. When your vehicle still has significant value, you need to carry full coverage to protect your investment. However, as your car ages, you may be able to reduce that coverage. On vehicles with low Blue Book value, simple liability insurance may be sufficient. With that coverage, you will be protected if you are at fault in an accident. You can also reduce your rates by raising your deductible, but make certain you'll be able to cover that amount if necessary. 

Drive An Old Car

If you really want to save money, both on insurance and car payments, you should drive an old or "unappreciated" car. You can find a reliable vehicle for less money if you choose an older model or one that has some minor body damage. Insuring such a model will cost you much less, whether you choose full coverage or simple liability. The key is seeing your vehicle as a mode of transportation only and not as a status symbol. Sure, people will stop and stare at your brand new sports car, but they won't envy you the expensive car payments and monthly insurance premiums. 

You can keep your vehicle insurance at a reasonable rate with a little effort. Clean up your credit and choose a practical vehicle. Lowering your vehicle insurance isn't a glamorous quest, but you will appreciate the extra money in your pocket. For more information, consider contacting companies like Angel Auto Insurance.