If your car insurance rates have increased recently, there may be hidden factors at play. Luckily, there are some simple ways to help reign in premiums. Knowing what changes will have the biggest impact on lowering car insurance costs can help you take more control over premiums. Here are three factors that can help.
1. Driving History
What type of driver you are is one of the biggest factors that affect how much you pay for car insurance. Luckily, you have some control over this. Defensive driver courses, following traffic laws and limiting distractions while driving can all help improve your driving record.
An insurance deductible is how much you will pay out of pocket before your policy kicks in. If you have sufficient savings for emergencies, you might consider setting high deductibles on your auto policy, which can significantly reduce your annual premium.
3. Credit Score
Your credit score is used as a predictor of your likelihood of meeting financial obligations, and a low score can negatively impact how much you pay for car insurance. Work to improve your credit score to help keep premiums lower.
Lowering car insurance costs is possible if you know the factors that impact premiums, such as your credit score, driving history, and policy deductibles.