How to Reduce Your Auto Insurance Rates

A couple sitting at a table on their computer and looking at papersAuto insurance is a mandatory precaution for all car owners, so it’s important to have the coverage that works best for you. Accidents and other circumstances like driving experience and credit history may have caused your insurance rates to go up. However, that doesn’t mean there aren’t any ways for you to bring your rates back down to a more affordable level. It’s best to learn more about auto insurance to improve and get better rates across the board.

Take Driving Courses to Prove Your Safety

Maybe it’s time to get behind the wheel with an instructor and polish your driving skills? Driving courses are a great way of improving your standing with insurance companies, but will also help you more directly; like making you a better and more aware driver than before:

  • Driver’s Ed is usually taken by students but remains available to everyone. Once you’re over the age of 25, you’ll be able to take the final test and pass the course. After taking the course, and depending on your insurance policy, you’ll receive a 5% -20% discount on your auto insurance.
  • Defensive Driving Courses are classes that inform drivers about crash history, rates of accidents, and collision occurrences. Passing these courses will also reduce your auto insurance while giving you valuable knowledge.

Drive Safely to Avoid Insurance Risks

If you have had a few accidents or a speeding ticket, then chances are your insurance rates have increased. This is your company attempting to balance cost-to-risk ratio according to your history. If it seems that you’re prone to accidents, then it’s only natural that your rates will increase. However, if you remain diligent and become more cautious, eventually you should see the cost of your insurance began to decrease. Most companies will remove increased rates after a certain time while also offering further deductions with safe driving over a certain period.

Increase Your Credit Score

If you’re a student and thinking that you’ll be getting a car soon, then you should start working on your credit score now. A simple way of doing this after obtaining a credit card is using it on simple purchases and quickly paying it off. It’s a slow but steady way to build your credit so you can one day get good rates on your insurance.

If you’re currently a car owner, then you’ve already got auto insurance. Here are a few ways to increase your score:

  • Make payments on time
  • Verify your credit report
  • Fix late payments
  • Open a secured credit card

Make Smart Insurance Choices

When looking to get auto insurance companies, make sure you survey the playing field. Many online services provide comparisons, including directly at the websites of major insurance companies. Looking for another way? You may want to reach out to a local independent insurance agency. While the above methods can help lower your credit score, working with an unbiased agency with many carriers can help simplify the process, getting you only what you need.

At the TJ Woods Insurance Agency, we’ll help you explore different auto insurance policies and carriers and help you find out which is right for you. Looking for courses or classes to help reduce your premiums? We can help you find them in your area and which plans they apply to. Want to learn more about auto insurance? Make sure to check out their section in our Learning Library of blogs, as well as our longer whitepapers.