Heres What To Do With Auto Rates Too High

Dreaded auto insurance renewal envelope. The new declarations page and premium invoice arrive in your in-box or mailbox like clockwork, thirty-days from your renewal date, and so begins the guessing game as to whether your premium went up or down. And let's face it, most of us assume that it probably went up!
It's frustrating to have an increase in your auto insurance premiums when you have not received any speeding tickets or had any accidents, as it means more money out of your pocket. Sometimes these rate increases visit every household in your area and there is little you can do about it (more on that later). Often, however, these increases are preventable, due to traffic violations, accidents, and claims.
So let's explore some of the ways in which we can mitigate (or eliminate!) future premium surprises on our auto insurance renewals.
1.) Be safe! This is probably the most obvious way to avoid paying more for auto insurance, but bear with me for a moment.
We all know that getting a speeding ticket or causing an accident can cost us money on auto insurance. But did you know that many insurance companies offer discounts if you complete a certified driver's safety course? It's driver's education for adults, and you even get a certificate at the end. If you have a job that requires you to drive a company car, consult with your employer to see if they would be interested in sponsoring such a course, taught by a certified instructor, for all of the employees who drive. Not only will you benefit from brushing up on your driving skills, you'll possibly be able to provide your insurer with a training certificate granting you a premium discount.
2.) It's not me, it's the car. If you're driving a car with a high performance engine or a lower safety rating, you can generally expect to pay more for your auto insurance. So if you're considering purchasing a new car in the near future, the cost to insure can be an important factor for you to account for when car shopping, not just looks or gas mileage. When car shopping you should obtain a VIN (Vehicle Identifican Number) for each vehicle you're considering, and have your agent or company work up some quotes for you. As an insurance agent I can tell you that I have watched more than a few clients base a car buying decision largely on the cost to insure it.
3.) I still love my car, but it's 15-years old! Today's automobiles are more reliable and dependable than ever before, and there's no reason not to drive your car for 10-15 years or even longer! When your odometer turns over landmark numbers, consider increasing comprehensive and collision deductibles, or dropping those coverages altogether. As your car ages and depreciates in value, maintaining lower deductibles for comprehensive and collision may no longer make financial sense.
Take note, however: If you still have an outstanding loan on your car, make sure you consult with your lending institution to make sure that you're not violating your agreement to carry predetermined comprehensive and collision deductibles.
4.) Become the "total package." Many companies who insure cars also sell homeowners insurance, and may offer a discount if they insure both for you. If you haven't already, obtain a quote from one company for both products to see how much money you can save with a multi-policy discount. And while you're at it, make sure that you inquire about other package discounts that may be available: discounts for high school students who earn good grades, for low-mileage driving, and so on.
5.) Keep your credit score in good standing. Most insurance companies factor in your credit score and payment history when developing their premium calculations, so make sure that you keep an eye on your consumer credit history and correct any errors if you find them. The better your credit history, the more likely you will pay less for your insurance.
And since we're talking about premium increases and ways to alleviate them, it's only fair to point out that sometimes insurance companies have to raise premiums for all (or most) of their customers in their rating territory.
These rate increases are due to large numbers of losses, the frequency and severity of losses since their last rate change, and other factors. When we purchase insurance, we are simply pooling our risk with others who live near us, and occasional rate increases are dictated by something that's happened to our group.
The five simple steps above are recommended solely as a starting point to make sure that your insurance company is delivering the best premium you are entitled to given your current situation.
One last thing to take into consideration: auto insurance can usually be changed at any time during the policy period, not just when the policy is issued or when it renews. If you decide to change coverage or add discounts, you can make make those changes -- and any premium reduction that occurs -- effective immediately.
By working with your company or agent you may uncover savings that extend beyond this list, both on your next renewal and in the future.

* Disclaimer: This article is for general information purposes only. Insurance laws in your state of residence may vary, or conflict, with the information as presented. Please contact a licensed insurance agent in your state before making any decisions to purchase, renew, or cancel insurance policies you hold.