When it comes to auto insurance in Iowa, you’re not paying the least expensive rates in the country. The average rate for a driver in Iowa is around $1,150 per year, and prices differ as much as $235 from least to greatest. It’s not a terrible price for a driver, but it’s also not something you must pay if you’re unwilling to settle on an amount that doesn’t work well with your budget. Many factors affect what you pay for insurance each year for your automobile, but not all of them are set in stone. Many of these factors are easily changed, and you must only know how to make that happen.
Insurance in Iowa
Progressive, Hastings, Partner Mutual, Farm Bureau Mutual, and State Farm are the most affordable companies to work with for most people who reside in Iowa. This may or may not be true for you, but it does help you understand where to look when it comes to finding the best possible price for your insurance premium. Other factors include the following:
- The kind of car you drive
- Your credit
- Your driving history
- Where you live
If you have an older car, it’s more expensive to repair if anything happens to it. Sometimes it’s impossible if the vehicle is no longer made. It’s also more affordable to insure a vehicle that’s larger, because it’s typically considered safer. If you have a larger engine, such as a V8, it’s going to be more expensive to purchase a policy. Your credit score is also a large factor. Iowa insurance companies need to know what kind of person you are, how financially capable you are of paying your bills, and how you might behave as a customer. This is how they determine your rates in addition to checking your driving record.
That’s pretty self-explanatory. If you’re not a safe driver, you’re not going to get the best rates for insurance. Where you live is also important. Living in an area with a high crime rate or one with a low economic status typically means your car is at a greater risk for accidents and theft. Your insurance company will raise your rates because of this, and because many of the people who reside in the same areas are less likely to carry insurance policies of their own.
How To Lower Rates
If you really want to pay less, you’re going to need to learn how to lower your rates by asking. The first step is to call your current insurance company. Let them know you’re in the market for a lower rate, and ask them what they can do for you to help you achieve that. This is a lovely option for anyone who has been with the same insurance company for many years without missing a payment, without making a claim, and without making changes to their policy. You become a valued customer when you do this, which is why these companies are more willing to work with you to lower your premium.
You can also check to see if any of the professional organizations you are a member of have any discounted offers for insurance. AAA is a good example of an organization that might allow you to receive an insurance discount. If you move your other insurance policies to the same company, you can get a discount for bundling home, life, and car insurance.
There’s another simple way to lower the cost of your premiums. You can save money by paying your premium in full at the beginning of the year rather than monthly. This allows you to avoid paying the hidden fee each month, which is around $5 – $10 depending on your policy. Many Iowa companies offer you the chance to save money if you pay upfront by offering you a small discount of around 5%.
You aren’t required to pay the most expensive rates for car insurance, but you don’t have the power to change it all. You can change your age or gender, but you can change other factors that do affect your score more than others to make your policy more affordable.