Car insurance is one of those things that no one likes to pay for but everyone must have if they’re driving a car. You might feel like you’re constantly on the hunt for the best rate when your premiums keep rising. We put together a list of tips that can help you save money on your auto insurance.
- Have Good Credit
Every insurance company will pull up your credit report. Anyone with a good credit score will pay less for their insurance than someone with a high credit score. This is because studies have shown a direct correlation between your credit score and how likely you are to file a claim. If you pay your bills on time and have had credit accounts open for several years, insurance companies know that you are more financially stable than someone who doesn’t pay their bills on time and frequently opens and closes accounts.
- Choose Your Car Model Wisely
The type of car you drive affects your premium. There is a rating system for every make and model of vehicle that your insurance company looks at. They factor in how much you paid for the car and safety and theft information. Then they assign your car a number between 1 and 27. The higher the number, the higher your premium will be. If you are buying a new car, you can tell your insurance company what make and model you are looking at so they can give you an idea of what your premium will be before you buy.
- Safety First
What may be new information to some, any personal items that are stolen or damaged from your car aren’t covered by your car insurance policy. However, you can file a claim on your homeowner’s insurance. Most of these policies will cover small, inexpensive items, but if you plan to be carrying around expensive computer equipment, you will want to ask about a rider to your homeowner’s policy. You may also want to take photos of any of your expensive personal items to document in case they are stolen.
- Don’t be a Bad Driver
It will certainly hurt your wallet to be a bad driver. Bad drivers may have to pay 40% more of a premium on their insurance base rate after their first at-fault accident. For instance, if you are already paying $400, your premium could go up an additional $160, but not all car insurance companies operate this way. Fortunately, there are some insurance companies that will forgive your first accident. There are a wide range of qualifying variables so you will need to ask your insurance company if they have such a policy and how you can qualify for it.
- Sales Tax
Nebraska is one state that requires you to pay sales tax whenever you replace your totaled car with a new or used car. Policy holders will need to make the request though because your insurance company likely isn’t going to offer to pay this money upfront. Even if you don’t live in a state where this type of a sales tax reimbursement is required, you should still go ahead and request it. There are actually a lot of car insurance companies who won’t deny this request because your car insurance policy requires that your insurance company make you “whole,” which means that they must return you to the same condition that you were in before the accident without any cost to you.
It is important to understand that this tax is going to be calculated on the pre-accident value of your car. This means that if the insurance company values your car at $10,000 and you purchase a new, replacement car that costs $30,000, the tax will be calculated on the $10,000, not the $30,000.
If you’re looking for affordable auto insurance without sacrificing the coverage you need, contact us today. We will work with you to get you the best policy at the best rate.