Many factors determine your car insurance rates. The community in which you live, your credit score, and the make and model of your vehicle all affect how much you pay for coverage. Let’s look at some reasons why your rates may drop.
#1 You Have a Clean Driving Record
Once you’ve been driving for a while, you may notice your insurance rates start to drop. That’s because insurers use your driving record to determine how much to charge each month. So, if you have a clean record, your premiums may be lower than those of someone with multiple accidents or tickets on their record.
A clean driving record shows you are responsible and less likely to get into an accident. This means the insurance company will be more likely to give you a lower rate, which can save you money each month. So, there are incentives for driving safely!
#2 Children Moved Out of Your Home
If your kids have moved out of the family home and are on their own, you can remove them from your car insurance policy, lowering your monthly premium.
However, if you have college students in your household, some insurance companies require them to attend school out of state or over 100 miles away to list them as “away at school” to reduce the premium.
#3 You Got Married
You may be surprised that getting married can help lower your car insurance. Insurance companies know that married couples are less likely to file claims.
The reason is simple: Married people tend to have fewer accidents than their single counterparts. In addition, if you get married, you’ll probably be safer on the road because your spouse will ride with you and serve as a second set of eyes and ears if you make mistakes behind the wheel.
Getting married can lower your insurance rates by around 6% or more.
#4 You Purchased a Vehicle With Safety Features
A car with safety features is less likely to be in an accident. In addition to better safety ratings, vehicles with safety features often have more advanced technology to prevent accidents. Some of these include:
- Adaptive headlights that automatically adjust their beams based on the vehicle’s direction.
- Automatic braking systems that detect an impending collision and apply the brakes if necessary.
- Blind-spot detection systems that alert you when you are about to make an unsafe lane change or merge with another vehicle.
If you recently purchased a vehicle with these features, you might see some savings on your premium. Some insurance companies offer discounts for certain safety features on cars, such as anti-lock brakes, airbags, and anti-theft devices. So, if your vehicle has safety features installed, ask your agent about potential savings.
#5 You Added Another Car to Your Policy
Adding a new car to your policy may reduce individual monthly car insurance premiums by 20% to 25%. This is because most insurance companies offer significant discounts for multi-car policies.
#6 You Had a Birthday
Car insurance rates are highest at age 16 when you’re the least experienced driver. As you age, rates drop but remain high through early adulthood.
Statistics show younger drivers are more likely to get into accidents or commit other violations than older drivers. As a result, younger drivers pay higher rates because they represent higher risks for insurers. Rates continue to decline with good driving behavior until age 65, when they start to rise again.
#7 Your Credit Score Improved
One of the things an insurance company reviews to determine your insurance premium is your credit score. You’re less likely to file a claim or get into an accident if your credit score is high. So, if your credit score has improved since your last application, it’s possible you’ll see lower rates on future auto insurance policies.
#8 You Moved
Auto insurance companies use your zip code to determine your risk, thereby determining your premium. Rates are partially based on an area’s claims history, so fewer thefts, break-ins, and accidents in your area can result in lower rates and vice versa.
ABC Dennis Insurance
ABC Dennis Insurance is an independent insurance agency established in 1997 that provides automobile insurance to its customers. If you have not reviewed your insurance coverages this year, please call our office at (813) 949-7765 or email us.
Besides auto insurance, we can help with all your insurance needs. As an independent agency, we find the best insurance coverage with the most competitive rates.