Low Cost Auto Insurance: 6 Do’s and Don’ts to Save on Auto Insurance
People can choose to do some things and not do others that will qualify them for low cost auto insurance. In a lot of ways, the rates people are charged for their auto insurance are due to features they cannot easily do anything to change. Gender, age and zip code are all reasons that auto insurance companies have been known to quote very high auto insurance rates, but the rates are not completely out each policy holders’ hands. Compare auto insurance by entering your ZIP code and comparing companies INSTANTLY!
1. Don’t Get a DUI
A DUI complicates each policy holder’s life in so many ways, and this is before the auto insurance company discovers that there has been a DUI. After the insurance company learns this information, the policy holders will receive even more unpleasant consequences for driving under the influence and breaking state car insurance laws.
After receiving a DUI, the auto insurance company will send these particular clients a letter telling them that they are about to receive an increase in their auto insurance rates. The worst thing about this is that these rates may quadruple because of the DUI. If they were paying high rates to begin with, a quadrupling of the rates would make paying their premiums impossible.
After a DUI when people seek a new auto insurance policy, they will be quoted the very highest rates. The auto insurance companies do not have a choice but to do this because people who have been arrested on a DUI charge are the riskiest drivers.
What also happens with a DUI is that these people may need to purchase a special certificate to prove that they have purchased insurance called the SR-22 form. This adds to the cost of the auto insurance policy and is something to avoid being required to purchase if one wishes to save on auto insurance.
2. Don’t Get Too Many Points on the Driving Record
As points are added to a person’s driving record, they become classified as dangerous drivers. If they receive too many points within a 12 month period, their auto insurance companies begin to raise their auto rates. Some of the moving violations that cause people to receive points on their records are:
- Driving recklessly
- Driving carelessly
- Driving too closely behind another vehicle
- Not giving the other vehicle the right of way
- Cutting off a pedestrian
- Not stopping at a red light or a stop sign
- Driving at too low a speed
- Driving too fast
Points systems are different in every state, but all drivers can expect to receive penalties for accumulating too many points too quickly. They have the chance of having their driver’s licenses suspended and if this happens, their auto insurance companies will, most likely, be cancelled as well.
Those who have suspended licenses are now in the highest risk category, and becoming higher risks always means that their auto insurance rates are going to increase. After the suspension has been lifted and they try to purchase auto insurance, they will find their quotes will be very high. Driving carefully and keeping their driving records clean will keep them from experiencing this unpleasant scenario.
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3. Don’t Drive Without Car Insurance
Those who drive without car insurance are another group that is proving itself to be very high risk. By driving without liability auto insurance coverage, people are risking a lawsuit from the people they hurt and the people whose property they damage. They are risking losing everything they have in savings as well as having their future wages garnished.
When people drive without auto insurance, they are breaking the laws of their states. They are risking losing their vehicles in some states, they will have to pay fines and will need to prove to the Department of Motor Vehicles (DMV) that they have purchased auto insurance if they want their driving privileges restored.
Auto insurance companies will ask each new applicant if they have auto insurance currently and when they find out that their new applicants were driving without auto insurance, they know to place these people into the high risk category and they receive high rate quotes.
4. Do Attend Traffic School
After people have received moving violations, they have the option of attending traffic school to reduce the points that were added. Doing this would be very important, because allowing points to accumulate increases auto insurance rates. But, they cannot immediately run to traffic school the day that they receive a ticket.
In order to receive the positive effects that traffic school will give them, a reduction of points on the driving record, the points must show up on the driving record first, and this is not an automatic occurrence. If this is going to happen, the DMV will send a letter notifying them that these points will be added to their records. This would be the time to attend traffic school.
This strategy can only be used once in a year, so after they attend traffic school once, they will need to drive very carefully to avoid receiving subsequent tickets for moving violations. They will be able to have three points removed from their driving records if the traffic school has been approved by the DMV.
Traffic school can be very convenient for people. If they need to, they can attend their courses online in the privacy of their own homes, and their auto insurance rates will not be as detrimentally affected.
5. Do Keep the Credit Scores High
People who have high credit scores are known to the auto insurance companies to be the lowest risks. If drivers have experienced an increase in their credit scores, they would be able to bring this to their auto insurance companies’ attention and request a rate decrease. They deserve this because they are now in a lower risk category.
People will have high credit scores because they are paying all of their bills on time. They are obtaining credit, and they are paying it back every month as their contracts dictate. Auto insurance companies know that a sense of responsibility is something that goes beyond paying the bills on time; this sense of responsibility also accompanies the individual when driving along the roads.
The auto insurance company is also aware that people with high credit scores are not acquiring too much debt. When this happens, consumers often begin to have trouble paying their bills. With clients who do not have too much debt, auto insurance companies know they don’t have to worry that these clients will not pay their premiums. Compare car insurance companies and find the best auto insurance discounts!
6. Do Compare Quotes
People have the opportunity to shop around even when they are clients of another auto insurance company. This actually is a very good idea for these people because if they are paying high auto insurance rates, shopping around other auto insurance companies’ rates will steer them in the direction of lower auto insurance quotes.
About a month before the policy expires, the car insurance company will remind their clients that it is time to renew the policy. This gives these clients a chance to begin seeking a better rate and if they choose to switch car insurance companies, the time to do it is right before their current policies expire.
People are entitled to cancel their car insurance policies before the expiration date, and they will be entitled to receive a refund. But, they must be aware that they may have to pay cancellation fees.
If they are seeking a policy for the first time, shopping around also gives new auto insurance clients an opportunity to find the lowest rates. These people may automatically purchase their auto insurance from their parents’ auto insurance companies because they are familiar with the name. Shopping around will help them become familiar with other insurance companies and receive several quotes as well.
Receive Several Auto Insurance Quotes in Minutes
Comparing quotes is very easy to do. Those who would like to become more aware of more auto insurance companies can use the comparison website to be offered quotes from several companies. People looking for a new auto insurance company may not know exactly where they need to go for lower cost insurance, so obtaining several quotes from a large number of auto insurance companies will help them find the best prices.
This strategy will work very well for everyone, but those who follow the dos and don’ts will have an even bigger advantage. These potential clients will have given a new auto insurance company a reason to offer them the lowest quotes. Enter your ZIP code below and find cheap auto insurance TODAY!