How to Avoid Car Insurance Premium Increases
- 1). Find out what your credit score is by obtaining your credit report from a reporting agency. Auto insurance companies review your credit to help determine your premium. The lower your credit score, the higher your premium may be. Maintain your credit score by paying bills on time and disputing any errors within your credit report.
- 2). Review your driving history. You can obtain a copy of your driving record from your state's Department of Motor Vehicles. Take note of any tickets, citations or accidents listed. Insurance premiums rise when you have a poor driving record. Avoid tickets by following traffic laws.
- 3). Avoid accidents, which can raise your auto insurance premiums significantly. Drive defensively and reduce distractions while driving. Avoid driving when the weather is bad to reduce your chance of being involved in an accident.
- 4). Shop around. Insurance is a competitive business, and premiums can vary considerably among various insurance providers. Select the company with the lowest premiums for the same amount of coverage.
- 5). Drive a safe, low-risk vehicle. If you are shopping for a new vehicle, contact your insurance provider to determine if the specific vehicle you want will cost more to insure. Premiums typically increase for newer vehicles and vehicles without safety and anti-theft features.
- 6). Drive less, if possible. Insurance companies offer discounts to motorists who drive fewer miles per year than the average driver. People who drive more than average are at a higher risk for accidents and therefore receive a higher premium.
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