Missouri drivers always want to find better insurance rates for their vehicles, and there are ways to do it. Driving is a privilege, and it’s a convenience. Paying for auto insurance is a pain for many. It’s an expense you pay each month that most people never use. It’s painful to spend hundreds of dollars each month for something you don’t use, but it’s so worth the price if you’re ever involved in an accident or if something happens to your vehicle. Being a necessary evil is tough for auto insurers, but you have some options available if you want to find better rates for your insurance policy. Here are few great tips for Missouri drivers to employ to find a better rate for your insurance policy when you want to lower the budget.
Pay Your Bills on Time
Did you have any idea your credit score is a big determining factor in the rates you pay for car insurance? Insurance companies use this as a starting guideline to find out what you might owe on your insurance premiums, and they don’t take it lightly. The lower your score, the more you’ll pay each month for your insurance policy. It turns out many people who have poor credit are also more likely to file claims for their vehicles, which make them riskier customers. Insurance companies are quick to charge higher rates for this kind of driver.
When you sign a contract for a new insurance policy, you have a choice to pay a monthly bill or to pay all at once for six months or a year. Choose to pay in advance. You’ll get two discounts from most insurance companies. Most offer a 5% discount for drivers willing to pay in advance. It might not seem like much, but it’s $5 per month for every $100 you spend. Additionally, most insurance companies charge a small fee each month to send you a bill or allow you to pay online. You can save another $5 to $10 per month on these fees if you simply pay upfront. If you do the math, you could save hundreds each year on the cost of insuring your vehicle.
Raise Your Deductible
If you can afford to pay for a higher deductible, lower your monthly bill by skipping the low deductible. You can get away with paying less if you have a larger deductible. Since many people never use their insurance, thankfully, it’s a good option for keeping costs down and making sure people are able to afford their monthly payments for car insurance.
Do you have a home or life insurance policy? If you do, consider putting them together with your car insurance policy. Many people spread them out through different companies, but several companies offer a significant discount for drivers who keep all their policies together with one company. Compare rates with several companies to see which one is willing to offer you the best rates, the best bundle discount, and the best options. It’s not easy to move everything around, but the financial aspect of it is helpful for many people.
Consider Your Car
If you have an older car without a loan, you don’t need the fanciest insurance. If your car is not worth much money to begin with, you’re not going to need every bit of coverage available. Ask your insurance company what they recommend for drivers who have an older car. It might even be worthwhile to purchase something newer and safer. Older cars are much more expensive to insure than newer ones due to the cost of parts as well as the safety features older cars aren’t typically equipped with.
When it’s time to compare rates with different insurance companies, don’t ignore the one you’re already with. If you’re a good customer with a long history of working with that company, they might offer you some discounts simply for being a loyal customer. Ask around, compare rates, and bring them to your current insurance agent to see if they can match or beat those rates to make your premium more affordable.