Does your auto insurance premium seem to keep going up? Get a rein on your auto insurance costs with these ideas for lowering your rates.
Encourage Your Teen to Get Better Grades
If you've recently added a teenage driver to your policy, no doubt you were in for a nasty surprise when you received your next premium bill. Teen drivers are one of the most common reasons for rate increases on auto insurance policies. However, you can get some relief on that raised premium if your teen gets good grades. Some auto insurance companies offer a discount for teens with a certain minimum GPA. The reasoning is that better students make better drivers.
Encourage your teen to get better grades so your discount can kick in. This is an especially good incentive if your teen contributes to the cost of the auto insurance, since their portion will be smaller.
Submit to a Driving Sample
Better drivers can enjoy lower rates on auto insurance. Some auto insurance companies will give you a better rate if you allow them to sample your driving habits in real time. They will send you a device that connects to your car's computer, then record your speed, mileage and overall driving habits.
If you're willing to submit to a driving sample, it's possible that you could save a significant percentage off your rates, assuming you are a responsible driver.
Secure Your Vehicle
Auto insurance rates are calculated with a complicated algorithm. But among the factors influencing your final rate is your vehicle's security. If you live in a crime-ridden area with no garage and no anti-theft mechanisms installed, you'll pay more than a person who lives in a safer neighborhood and who houses their car and uses a car alarm or other theft deterrent.
You should provide whatever extra security you can for your car. Whether it's a new car garage, a car alarm, or a steering wheel lock, report the changes to your auto insurance representative. Chances are, they'll give you a break on your rates because of the extra security and diminished risk.
Raise Your Deductible
If your monthly auto insurance premiums are really getting you down, you can lower them by raising your deductible. This increases the amount you'll have to pay out-of-pocket if an accident occurs, but the lower rate will give your wallet a break.
Make sure to set aside some money in a savings account to compensate for the raised deductible. If the worst does happen, you'll have the money on hand to pay the out-of-pocket expense.
Keeping your auto insurance rates manageable is possible when you use these simple tips to keep them in check. Visit an auto insurance company like Martin Insurance Company today for more information.