Getting your car insurance rate usually starts by entering your zip code with most insurance providers, ever wonder why? That’s because where you live is the start of most base car insurance rates. If you live in a populated area with lots of roads and traffic, then accidents and insurance claims are higher – especially when compared to a suburban or rural area without much congestion on the roads.
The chance of being involved in a car accident is just much higher, no matter how safe a driver you may be. If you’re in the city with lots of other cars, the chances of you being in an accident on the road go way up. So short of moving out to the suburbs, what can you do to reduce car insurance costs if you live in a densely populated zip code?
You can’t go house to house in your neighborhood and reprimand all your neighbors to be safer drivers. Here are four things you CAN do to reduce your overall auto insurance costs:
- Great driving record – If you’re a safe driver, you’re going to get a better insurance rate than someone who has had several accidents or minor violations. If you’ve only had one at-fault accident Verti offers FreePass Accident Forgiveness. This Verti program treats your first at-fault accident like it never happened as long as you remain accident free.
- Be smart with your money – Do you pay your bills on time? Do you keep your credit balances low? People who manage their finances, tend to have fewer claims. That is why establishing a good credit history can help you reduce your insurance costs. You should check your credit rating on a regular basis and have any errors corrected as soon as possible.
- Drive a safe vehicle – Part of your car insurance premium is based on what vehicle you drive. How much did it cost to purchase? What is the safety record for your car’s make and model? What is the average cost to repair that make and model for different kinds of accidents? What’s the likelihood that your car’s make and model will have a break-in or be stolen? When you buy a car, whether it’s new or used, you should check what typical car insurance costs are for that make and model. The Insurance Institute for Highway Safety (IIHS) is a great resource for evaluating vehicle safety when you’re car shopping.
- Maximize discounts – When evaluating your car insurance, make sure you take advantage of any car insurance discounts you qualify for. Many car insurance companies offer discounts for safe driving, paying your bill in full, anti-theft devices in your vehicle and many more. Always make sure on renewal to check for any new or better discounts. For instance with Verti, if you’ve been a safe driver for five years, you qualify for a larger discount than someone who has been a safe driver for three years.
So unless you’re contemplating moving to a far more rural zip code, these are a few things you have a bit more control of. These four factors are aspects of determining car insurance rates that you have the ability to control a bit more easily. If you have a great driving record, are smart with your money and drive a very safe vehicle – you’re viewed as a far safer driver. Those factors can leave your wallet a little happier when it comes to paying for your car insurance too. Do you have any other questions about how car insurance rates are calculated? Ask us on Facebook or Twitter!