Auto Insurance Savings and Surprises

Posted on: October 8th, 2018 by Webolutions Hostmaster No Comments

auto insurance savingsAuto insurance is such a tricky world – especially if you’re navigating it for the first time on your own. Even for some seasoned insurance veterans, it can be confusing to navigation auto insurance savings on your premiums, and what can (unexpectedly or otherwise) cause your rates to go up. Signing on for one rate does not, unfortunately, mean you’re going to be paying that for the rest of the time you carry that policy. There are many things that can impact your premium, and sometimes you can’t even see it coming. Here are some of our guideposts to help you save, even if it surprises you!

Pay Upfront

Believe it or not, if you’re able to pay your insurance all in one go rather than those traditional monthly payments, you might save big. In fact, you can enjoy auto insurance savings of up to 5% by asking for this discount and paying your premium all at once. If you’re worried about budgeting for this, consider setting the monthly amount aside every month so when the next big premium bill rolls around in 6 months, you know you’ll be ready!

Don’t Text and Drive

Insurance agencies are punishing drivers who are caught texting and driving. Policyholders who get caught on this offense see an average of 16% hikes in their insurance premiums – compared to 22% for running a red light, it’s pretty obvious that insurance agencies are cracking down on this behavior and taking it very seriously. Luckily, there’s a pretty easy way to avoid this hike in prices (while avoiding auto body repair, or worse) and keep that money in your pockets – put the phone down when you’re behind the wheel!

Driving Less Might Not Matter Much

There’s an interesting belief that driving more means your insurance rates will be higher, but that isn’t necessarily the case. This rule will vary state by state (for example, in California, it’s a primary factor in determining rates) but if it’s not a priority in your state’s insurance formula, you might not be saving much by hitting the road less.

Watch Out for Extreme Weather

As Coloradans know well, extreme weather can have a negative impact on your insurance. It doesn’t really seem fair, after all, it’s not YOUR fault that hail storm hit while you were out running errands – but it’s been shown that in areas were extreme weather hits, rates tend to rise as a result. Hail damage = increase in claims being made to undo the damage, and an increase in claims = an increase in rates. If you live in an area where hail damage is likely, it might be worth prioritizing covered parking on your list of “wants” and “needs” when it comes to housing decisions.

Non-Driving Factors

We know it’s kind of shocking, but there are factors that have nothing to do with your actions behind the wheel that might contribute to your insurance rate being higher or lower than anticipated. Though there have been legal moves made in some states (like New York) to not allow education or occupation as factors for pricing auto insurance, this isn’t the case in every state. It is possible that your level of education (GED vs. PhD) or your occupation (public servant vs. medical doctor) could impact your rates.

At the end of the day, there are a number of things that can impact your rates, and knowing which ones might save you big, while understanding which ones can cost you huge if you’re not careful can help when you’re making those insurance decisions, and can make justifying the switch a little easier if you’re ever on the fence.

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