How to Give your Car Insurance a Tune Up

There are some expenses that are just a necessity of life no matter how much we dislike paying them, and car insurance is one of those things. You hate to pay it and if you make no claims on it year after year, you may be asking yourself why you are throwing all this money out the window every month. But if you have some kind of claim or an accident, it becomes clear very quickly why you need to have good car insurance that will protect you in this situation.

But do not be lulled into a false sense of security and just keep on paying the car insurance premiums month after month. It is unlikely that your car insurance company is going to advise you to check to see if you can save money, so it is up to you to periodically check to see what you can do to save money. Life is a dynamic thing where situations change on a regular basis, and some of those changes could have an impact on how much you pay for car insurance.

How is your driving record? If you have a perfect driving record or have no accidents or tickets on your driving record for the past five years, chances are that you may qualify for the safe driving discount that many car insurance companies offer.

What have you set your deductibles to be? For example, if you have your collision deductible set to $100, you are paying a LOT more for your collision coverage than if you had your collision deductible set to $500 or even $1000. Yes, it means more comes out of your pocket if you need to make a claim, but is it really worth the much higher premiums? This is one of those car insurance questions you need to ask yourself periodically.

Is your car paid off? If so, you can drop collision coverage if you want to, as well as reducing or eliminating many of the other coverages, which will drastically lower your rate.

How is your credit score? More and more car insurance companies are using a consumer's credit score to determine the rates that will be charged that consumer. If your credit score is lower than it should be, you should take the necessary steps to raise it. For more information about raising your credit score, please visit our web site at http://www.credit-help-center.com/

Do you have teens or young adults in the house? If so, you already know that your car insurance rates went up when you listed your teens or under age 25 son or daughter as being drivers on your cars. But many companies will offer discounts for teen drivers if they maintain a certain grade point average, usually around a 3.0 GPA. If you used to have a teen driver but they have moved out, be sure to let your car insurance company know about it so they can lower your rates.

Do you have multiple insurance policies, such as home owners or renters insurance with the same company? Many insurance companies will give you a "multi product discount" if you have more than one type of insurance policy with them.

Lastly, shop around. Just because you have been with a particular car insurance company for years is no guarantee that they still offer your most cost effective option. Do not ignore an online car insurance company, since they can be very aggressive with rates. If nothing else, at least get a quote so you have something to compare to. The money you save will serve a much better purpose in your pocket than in the insurance company's bank account.

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