Updated on July 13, 2021
How to Improve Your Car Insurance Reviews
When it comes to car insurance, it’s often difficult to determine which companies offer the best deals. The old adage that you get what you pay for is true. The more you pay, the lower your rating will be. For instance:
Companies may benefit from bundling multiple policies. For instance: If you own more than one vehicle, you may benefit by having your car insurance company bundle your collision and comprehensive policies. By doing so, they can provide your policyholders with a discount on combined coverage. On the flip side, if you don’t own multiple vehicles, you may benefit by purchasing each policy individually, allowing you to save money on premiums per individual policyholder.
Policyholders who belong to a professional association or trade organization may benefit by joining. Many professional organizations require members to purchase automobile insurance through the organization. In turn, policyholders may benefit by enjoying discounts on their auto insurance scores if they purchase auto insurance through their association. The same is true for trade associations.
Policyholders who drive frequently may benefit by increasing their deductible. Generally, the higher your deductible is, the lower your premium payments will be. However, some drivers do not want to take on this additional cost. If you’ve found yourself driving very few miles each month, you’ll probably want to increase your deductible as much as possible. The same holds true for those who take public transportation to work: As long as you’re within a reasonable walking distance to work, you can probably decrease your auto insurance costs by increasing your deductible.
Policyholders who purchase a new vehicle often also save money by opting for a more expensive collision and comprehensive coverage option. The reason is simple: If your new car has a high theft rate, you may benefit by paying a bit more for your collision insurance. The same is true for an older car with a low safety rating. On the other hand, those who already own older vehicles and whose premiums are already under a considerable amount of pressure may benefit by simply choosing a more economical, comprehensive coverage option. This is because many good car insurance companies actually offer discounts for policyholders who buy a new car and also obtain collision coverage. If your current insurer does not have any car insurance options that cost less than the ones you’re interested in, it’s worth a quick phone call to your new provider to inquire about a discount.
Those with the highest insurance scores may benefit most from raising their deductibles. Deductible increases reduce monthly out-of-pocket expenses. For instance, a $500 deductible can reduce monthly payments by about 40 percent. Some experts believe that increasing your deductible may be the single most important thing you can do to improve your car insurance scores.
One other thing that policyholders can do to improve their car insurance scores is to avoid accidents. Studies show that policyholders who have been in an accident once are more likely to repeat the behavior. If you have an accident on your record, your auto insurance scores will probably take a significant hit, but if you are able to successfully complete a driver’s education program, your score may improve.
Rental reimbursement is another area that insurance companies frequently review to determine car insurance policies. Rental reimbursement rates are based on the risk of loss for the insurance provider. For instance, policies offering rental reimbursement for one night or one day are more expensive than policies that offer rental reimbursement for a weekend or a monthlong stay. Therefore, if you plan to rent a vehicle at some point, you may want to think about how your auto insurance policies might impact your future ability to rent cars.