Outsmarting the Car Insurance Rate Hike

Posted in Auto Insurance , Low Cost Car Insurance , Save on Auto Insurance

June 21st, 2009

We may have seen a significant drop in gas prices over the past few months, but car-related costs like car insurance are not offering the same generosity. In fact, according to brokerage firm, Stifel Nicolaus, rates raised an average of 2.5% in 2008 and could even rise as high as 7% in 2009 aftera fewyears of staying flat. Premiums are going up for everyone!

In a tough recession, no one wants to hear that prices are going to rise in any area of their expenses. So if you currently own a vehicle and are concerned about car insurance rates, you’re probably already trying to figure out how you can get a break on coverage. There are a few ways to outsmart the car insurance rate hike. Let’s look at what they are …

Try a Little Haggling

While it’s not necessarily easy to bargain with an auto insurance underwriter, you don’t have to settle for the quote you’re given. If you express your desire to have a lower rate, they may search harder for some discounts.

One popular discount that you might consider taking advantage of is being insured with the same company for more than one type of insurance. For instance, if you already have homeowners insurance, you might be able to receive a discount on auto.

Adjust Your Deductible

Another option that you can try to outsmart rising insurance rates is to increase your deductible. The higher your deductible is, the lower your monthly premium will be. Of course, with a higher deductible, you will have to come up with more money before you can place a claim to have your vehicle fixed after an accident. However, if you think you can cover, say a $1,000 deductible as opposed to your original $500 deductible, it’s a good idea to increase it to lower your monthly payment.

Clean Up Your Credit

Since your credit score can determine how high or low your auto insurance premium will be, it’s a good idea to obtain a copy of your credit report to see what items you can clean up. The more you pay up or pay off, the higher your score can be. So before obtaining a new policy, it’s a good idea to make credit a high priority.

Don’t let rate increases determine how much you will pay for auto insurance. By outsmarting the rate hike, you can easily pay the price you’d prefer.