9 ways to lower your auto insurance costs

Here are 9 tips to lowering your car insurance costs and how and why they are important.

1. Have a good driving record. Insurance companies historically look first at your driving record to determine your premium. If you happen to get a ticket, see if the court will let you take a defensive driving course to erase the ticket from your driving record.  Be care driving through parking lots. These type of accidents use to go unnoticed by insurance companies, not anymore.  These accidents may not appear on your driving record, but they will appear on your claims history report.  Most insurance companies report all claims to a firm that collects data of this nature.
2. Maintain good credit.  More and more insurance companies also look at your credit to determine your premium.  What does credit have to do with driving?  Attention to detail.  If you pay your bills on time, most likely you are careful.  You drive defensively.
3. Have a checking account.  If you have a checking account you most likely have good credit.  You will also be able to pay by EFT (electronic funds transfer) or autopay.  You avoid the installment fee each payment with EFT.
4. Have an email address, which you monitor. With an email address you will be able to take advantage of going ‘paperless’.  The insurance company sends your policy documents by email thereby reducing the cost of paper and postage.  They pass some of that saving on to you.
5. Pay in full. Some insurance companies offer big discounts for paying in full.  Why?  No accounting problems, no mailing out late notices, cancellation notices and reinstatement notices.  Plus if you pay in full, you most likely have better credit and insurance companies like that.
6. Go with higher deductibles. The higher the deductible the lower your cost.  With a low deductible you are betting you will have a claim, with a high deductible you are betting you will not.
7. Maintain continuous insurance. Once again, by maintaining continuous insurance, you are paying attention to detail.  Many standard insurance companies will not offer you a quote unless you have at least 6 months of prior insurance.  In that case, you must go with a company that specializes in providing insurance for people that let their insurance lapse or pay late.  Late payments and lapsed policies create more work for the insurance company; they pass that cost on to the insurance buyer.
8. Read your email and regular mail. In other words, open and read your mail.  Many times the insurance company needs additional details or clarification from you.  If you do not response to their request, they increase your rate.
9. If you are shopping around, do so in advance. Insurance companies offer discounts if you shop in advance.  Why?  Because you are taking care of business