Low-Cost Auto Insurance Rates 

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All About Low-Cost Auto Insurance Rates

We all want to be able to save money on car insurance, but for many of us, that’s easier said than done. The truth of the matter is that a lot of information is taken into account before a cheap auto insurance rate is issued. This information can range from your driving history to the car that you drive, and even to your credit score!

We know that you may feel overwhelmed when shopping for a quote so we’ve broken down what can impact your car insurance quotes and what you can do to lower them.

Your Driving History 

This probably isn’t surprising, but your driving history has one of the biggest impacts on the kinds of quotes that are available to you. That means that if you want to lower your car insurance rates, you’ll want to do your best to drive slowly and to drive safely on the road. A history of accidents, as well as a history of driving citations, will typically lead to higher rates.

But don’t worry! That doesn’t mean you can’t find insurance that will work for you, or that you can’t work toward improving it. The longer you keep practicing good driving, the better your driving history will become. In the meantime, you can look for companies that include options for drivers who have a few hiccups in their histories.

The Vehicle You Drive

The car that you drive can have a huge impact on how expensive it is to insure. This will be helpful to keep in mind when it comes time for you to purchase a new vehicle. For example, your collision coverage will generally be more expensive as the value of your vehicle goes up. For that reason, it will usually be more expensive to insure a brand new car than a similar used car.

In addition to that, any vehicle that can be loosely identified as a sports car, no matter how old, will be more expensive to insure. Instead, opt for cars that come with built-in safety features and that don’t have a reputation for getting stolen.

How Far You Drive

A lesser-known fact about auto insurance is that how much you drive can impact the amount that you’ll spend! Therefore, you may be able to save money on insurance by carpooling or taking public transportation when possible. Be sure to report any dramatic changes in annual mileage to your car insurance company so they can adjust your rates accordingly.

You can also save money on car insurance by living closer to where you work. In fact, for most quotes you’ll tell the insurance company how long your round-trip commute is and they’ll calculate your annual mileage based on that.

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The Deductible-Premium Ratio 

Another thing to keep in mind when purchasing car insurance is strategy. Hear us out. Generally speaking, a higher deductible will lead to lower payments in your monthly premium. 

A deductible is the dollar amount you must pay out of pocket before you can start using your insurance. The higher the deductible, the more you will be expected to pay for repairs after an accident. For example, a driver with a deductible of $2,000 would start receiving help from the insurance company when his or her bills reach $2,001.

On the other hand, your premium is the amount you pay each month in order to have insurance. Higher premiums will typically come with lower deductibles and vice versa. You may be able to save money on your monthly insurance payments by opting for a higher deductible. But be careful! You don’t want to choose a deductible that would be too high for you to afford if you do need to use your insurance later on.

Your Credit Score 

Remember when your parents told you about the importance of maintaining a good credit score? It turns out they were right! Your credit score could have an impact on the type of rates you’re offered. The higher your score, the better the car insurance quote at most companies.

Like your driving history, there’s no quick fix to improving your credit. But over time as your credit improves, you may start to see lower rates as well.

Where You Shop for Quotes 

Everyone knows that to get the best price on something, you need to do some research. Shopping around for auto insurance may be your best bet for getting a low price, especially if you’ve been with a company for a couple of years. Despite loyalty incentives, most companies will raise your rates over time, but companies sometimes offer lower rates or discounts for new customers. For that reason, you may want to compare rates every couple of years to see if you may be able to get a lower rate. Fortunately, Humble Eagle makes comparing quotes easy. Click here to get a quick and easy auto insurance quote.

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