Stop Insurance Rate Hikes In 3 Steps

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Car insurance premium hike

Can You Control Insurance Rate Increases?

Yes you can. Believe it or not you have a big say in how much you pay for your insurance. You can control the rate increases by taking 3 steps to change a few of your personal habits.

Step #1 – Change The Way You Drive

Your driving record not only affects how much you pay for auto insurance but your life insurance premiums as well. Insurance companies take driving records very seriously before issuing a policy. If you are a reckless driver you are a risk. You could cost the insurance company more money in claims. Auto insurers are concerned about paying for the destruction of property and loss of life; life insurers are worried about paying for the loss of life, yours.

Step #2 – Work On Improving Your Credit Score

Insurance company actuaries always use numbers to make their point. They have statistics to prove that an individual with a lower credit score has more accidents than someone with a higher credit score. And you thought your credit score only affected your credit card interest rates. Nope, it also impacts how much you pay for insurance. If you are serious about lowering your insurance premiums start by learning what your credit score is.

There is no reason to not know your credit score. You can order your credit score from each of the top 3 credit reporting agencies every year at no cost to you. That’s right, you can get your credit score every year for free.

Step #3 – Avoid Creating A Claim History

Car insurance premium
courtesy 2equal1

The goal of an insurance company is to limit the number of claims they pay out.  When you cost the insurance company less they reward you by charging you less. Makes sense, right?

Believing that insurance is free money is the wrong approach to insurance. Paying your premiums year after year does not entitle you to endless claim payouts. You pay your premiums year in and year out so that in the event of a major loss to property, limb or life you have the coverage available to pay for the damage.

Your Security Blanket

Insurance is like a security blanket. You buy it for reassurance. If anything were to go wrong you know that you and your family would be protected. Overpaying for that protection is not necessary. How much you pay for your security blankey is up to you.

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