Three Mistakes That Lead To Higher Car Insurance Rates

Auto insurance is one of the major costs of owning a car, so it makes sense to do what you can to lower this expense. The most common way to do this is by shopping around for the best price before renewing your policy each term. There are also some key mistakes you need to avoid to ensure you find the best right.

#1: Not asking about applicable discounts

Most people can qualify for at least one insurance discount if they take the time to ask. The most common types of discounts are for good drivers, loyalty discounts, and professional discounts. If you or any driver on the policy have no recent tickets or at-fault accidents, then request a good driver discount. Loyalty discounts are generally awarded for longevity of the policy. Professional discounts are a broad category, so you may want to ask for a list. Certain employers, alumni of certain schools, and those that belong to specific clubs may all qualify for one of these discounts. There may also be other discounts available, such as good student discounts or discounts for participating in certain programs or classes.

#2: Skipping the insurance bundle

Bundling your policies can also be an excellent way to save money. If you need more than one policy in your home, whether it's for another car, your house, health, or even life insurance, you can often get a discount if you purchase from the same insurer. Just make sure the bundle discount and the cost of the insurance is really a savings compared to insuring beneath other providers. It's also best if this is an ongoing discount rather than a one time bonus for bundling the services.

#3: Being irresponsible

There are a couple of ways that irresponsibility can cost you when it comes to insurance. The most obvious is to get a ticket or being in an at-fault accident. If either of these occurs, see if your company offers a discount if you take a safe driving class after the infraction. Another way irresponsibility can cost you is if you don't make payments on time or allow your policy to lapse. Many insurers provide discounts for those that pay in advance or set up automatic payments, but a lapse of even a day can lead to higher insurance rates for not maintaining continuing coverage.

For more help in finding additional information, contact a company such as Metropolitan Insurance Service Consultants.