5 Unexpected Ways to Lower Auto Insurance Premiums

There are many resources that share tips about saving money on car insurance. Nearly all automobile owners know they can reduce their premiums by driving an older vehicle, increasing their deductibles and taking safety courses. Here are some other, lesser known, ways to lower auto insurance premiums.

Avoid Automatic Renewal

Many companies encourage their customers to enroll in an automatic renewal program; some even offer incentives to enroll. Initially, these sound tempting, but they are not always as rewarding as they seem. In the long run, these programs can cost drivers hundreds of pounds in increased premiums and cancellation fees. There have been several cases of a car insurance company raising rates on an individual’s policy without notifying the individual, and then automatically renewing the policy. When individuals try to switch insurance policies, they can face cancellation fees. Therefore, it is best to avoid automatic renewal policies (maybe in consultation with Olympia State Farm insurance agents, or their likes) for one’s auto insurance.
Pay Off Credit Card Debt

Paying off credit card debt is another way to save money. Obviously, people who reduce their credit card balances save money on interest payments, but they also can reduce their auto insurance costs. One’s rate is based on a number of factors, including one’s credit history. The better one’s credit history is, the lower one’s payments will be. By paying off credit cards, drivers can improve their credit and reduce their monthly insurance payments. In the US, however, not all states allow insurance companies to base the premium on a car owner’s credit score. Depending on whether the laws about this are strict or loose, insurance companies may choose to check credit ratings before setting a premium. In either case, you can always find real insurance companies that don’t check your credit score and choose to get your auto insurance from them, too.

Avoid Unnecessary Medical Coverage

The level of medical coverage one needs is dependent upon one’s own health insurance policy. All auto insurance policies have a section that covers the medical expenses of anyone who is injured during a collision. If a driver has good medical coverage through a health insurance policy, then duplicate coverage through an auto policy might be unnecessary. Drivers should keep in mind that their passengers will not have the same health insurance plans as they do when weighing the costs and benefits of health insurance.

Carpool to Lower Annual Mileage

Most insurance companies offer discounts for drivers who driver fewer kilometres each year than the national average. However, few drivers have control over how many kilometres they travel each day. Work is a certain distance from one’s home, as are children’s schools, churches and stores. There is one way, though, that drivers can significantly reduce their annual mileage: They can carpool to work. If workers carpool together, they might be able to reduce their weekly distance driven by a few dozen kilometres. Over the course of a year, this could earn them a discount.

Voluntarily Exclude Drivers

In some cases, such as a drink-driving violation, an insurance company might exclude a driver from driving any motor vehicle. This means the driver is no longer insured and cannot legally drive a vehicle.

Some families are voluntarily excluding drivers in their home, so they do not have to pay to insure a high-risk, expensive driver. Most people who do this have teenagers that increase their insurance rates. When a driver is excluded, he or she cannot drive a vehicle under any circumstances, so this is best used when there are other modes of transportation readily available. This is not a legal option in every area, so people must check their national and regional laws before trying to exclude a driver. Those who can exclude a driver legally can save hundreds of pounds a year.

There are many ways to save money on auto insurance; these are some less conventional methods. With these, drivers can significantly reduce their auto insurance premiums. People who want to explore any of these options should contact their insurance company.

Ed Brohan writes for CheapCarInsurance.net, which helps people find inexpensive auto insurance.