How much did you pay for car insurance last year? If you did not use an independent agent at Homewood Insurance, there is a good chance you paid too much. Insurance costs have been on the rise in recent years due to an increase in cars on the road and other factors, such as distracted driving. But just because the average cost of car insurance is rising, it does not mean that you should pay more for coverage than necessary. Continue reading to learn what types of variables affect your car insurance premiums and what you can do to keep them low.
Review Your Driving Record
Your driving record plays a big role in the cost of premiums with most insurers. That is because past driving behaviors are often a good indication of future ones. If you have a history of reckless driving, insurers may assume those habits will continue. Some insurers may overlook a minor speeding ticket, whereas others could penalize you for it. Fortunately, you can count on any driving record blemishes to become less important to insurance companies over time.
Review Your Credit Report
Insurance companies use credit reports to draw conclusions about your habits. A person with a good credit score and minimal debt may be viewed more favorably than someone with irresponsible borrowing habits. Be sure to check your credit report for any inaccuracies. If you do have negative marks on your credit history, remember that most of them will age off within about seven years.
Reconsider Small Claims
Claims have a big affect on your future insurance costs. Some insurers offer ‘forgiveness’ for a first-time accident or claim, but you may lose any claims-free discount you are enjoying. Insurers review claims from prior accidents and other events for up to seven years. The number and type of claims you have – not necessarily the size – can be perceived as an indication of your likelihood to file future claims against your policy.
Other Factors that Affect Your Car Insurance Rates
In addition to your driving record, credit history, and claims history, several other factors can also affect the cost of coverage. Examples include:
- The type of vehicle you drive
- The cost to repair or replace your vehicle
- The number of miles you drive each year
- The age of the drivers on your policy
- Where you live
- And more
The key is getting matched with a quality insurance company that will skew more favorably toward your individual risks than other insurers do. Here at Homewood Insurance, we help the driver find quality coverage at affordable rates by shopping around for quotes and insurance discounts from multiple carriers. We can help you find coverage for your vehicles, as well as your home and other assets. If you are not working with one of our helpful independent agents, call us today to find out how much we could save you on future premiums. We look forward to serving you soon.