It’s time to renew your income car insurance, and rates have probably gone up. Even if you haven’t changed anything else on your policy, it might be time to shop around for a new insurer.
The length of your policy term can also make a difference in your rates. A 12-month term can help you lock in a single rate for the year, which could be beneficial if you’re looking to avoid bi-annual rate hikes.
Review your policy
During the income car insurance renewal process, you will need to review your policy and make any necessary changes. This can include adding or removing vehicles from your coverage, if you have one, as well as making any changes to your vehicle.
For example, if you’re going to be driving longer or less each year, you should tell your agent so they can adjust your premium accordingly.
Additionally, if you’re moving into a different city or suburb, you should tell your agent about this as well. You could save money on your car insurance if you change your commute time or start parking in a secure garage instead of street parking.
Another thing that you will want to do is check your credit history and see if there are any changes that may require additional attention, such as increasing your score or paying off debts. Taking action in these areas can also help you get better rates and improve your coverage.
Review your limits of coverage
When it comes to car insurance, your limits of coverage are one of the most important parts of the puzzle. A low limit can make it difficult to cover your costs in the event of an accident, so increasing them can help protect you and your assets in the long run.
For example, you might decide to add additional liability coverage or lower your deductibles for collision and comprehensive coverage.
To find out what kind of coverage is best for you, compare the limits of your current policy to those recommended by your insurance company. You might also want to look at adding optional coverage such as gap coverage or accident forgiveness.
Review your payment method
There are many ways to pay your insurance bills these days, but one of the most popular is to make monthly or bi-weekly payments directly to your credit union or auto insurer.
Not only is it convenient, but it also helps ensure that your insurance policy isn’t canceled if you happen to go into the red too often. Depending on how large your account is, you might be able to pay your premiums by phone or online.
The biggest hurdle to overcome is finding out which companies you’re dealing with. Once you’ve identified your top contenders, the next step is to find out which company offers you the best rate.
Review your claims history
Insurers base their rates on your driving history, accident and claims history, as well as your age. If you’ve had a crash or multiple traffic violations in a short period of time, your insurance company may raise your premium.
Many companies offer discounts to drivers who have a long history of claims-free driving. Young drivers who’ve taken a defensive driving course or are away at college without a car might also qualify for lower premiums.
Your credit score is also a factor in pricing your auto insurance. Check it regularly, and have any errors corrected immediately to keep your credit report accurate.
Some insurers also offer a discount for people who carpool to work, and for those who drive less than the average number of miles per year. You can learn more about these discounts by calling your insurer or your state’s Department of Motor Vehicles.