In many areas, your auto insurance premium can be as expensive as a monthly payment on a car loan. That is why you need to think smart and long-term when it comes to ways to save on auto insurance.
#1: Watch Where You Live
Where you live can play a major role in how much you pay. Your auto insurance rate is partially based on where you live. Call your insurance company and get quotes based on different addresses where you can live. Oftentimes, living in the city may increase your insurance rates versus living in the county. Choosing to live somewhere where the insurance rates are lower will help you keep your insurance premium rates down over the long-term.
#2: Pay Your Bills
Your credit score impacts your insurance premiums. Having a good credit history can impact your insurance rates. If you want to keep your insurance premiums low over the long-term, you need to make sure you pay all your loans and credit cards on time. Don't miss payments and work to keep your debt-to-income ratio low. A high credit score will help you enjoy lower insurance premium rates.
#3: Drive an Older Car
The car you drive greatly impacts your insurance costs. Driving an older car can help reduce your insurance expenses. The rates for older cars are lower because if your car is damaged, the replacement cost is not that high. Additionally, with an older car, you don't have to carry the same amount of coverage. You don't need to carry more than the basic coverage, and you don't need extras like gap insurance either. This can help reduce your overall insurance costs.
#4: Always Shop Around
Finally, you should always shop around for insurance coverage. Don't assume that loyalty to one company will pay off by default. Each insurance company uses a different formula for calculating their premiums, and sticking with the same company and never shopping around could cost you. Get quotes from a few different companies each year and choose the company that offers you the best savings.
If you want to save over the long-run on your insurance costs, you need to watch where you live, drive an older car you don't have to carry as much insurance on, pay your bills, and shop around for a better rate. These steps will help you enjoy lower insurance premiums over the long-term. Contact insurance providers to learn more about auto insurance coverage.
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