As of 2020, North Carolina stands as one of the most inexpensive States for car insurance, averaging at $444 and $1,370.
Now, these rates have been going up for the last couple of years, and it doesn’t look like things are going to change, but you can do something about it. With the current financial uncertainty due to the Coronavirus pandemic, it’s understandable that you’re looking for different ways to cut expenses.
One of the best ways you can do that is by lowering your auto insurance premiums. As long as you’re dealing with a reliable insurance agency, it’s a lot easier than you think, and we’ll help you through it. We have compiled some of the best tips that will help you lower your insurance premium costs from here on.
Maintain a Great Driving Record
If there’s one thing that will help you lower your insurance costs, it’s maintaining a clean driving record.
One of the most important reasons this is a significant factor is that it qualifies you for any preferred insurance companies in Charlotte, NC, or any other North Carolina city. Even better, it won’t add points to your insurance record, which would otherwise increase your premium costs.
You see, in North Carolina, 1 point will lead to a 30% increase, while the maximum 12 points will lead to a staggering 340% increase. You can only shed off these points after three years of the accident or violation. This means that the more careful you are when driving, the lesser the chance of accumulating these points and essentially paying more than you should for your insurance.
Maintain a High Credit Score
You may not know this, but your credit score plays a significant role in how much auto insurance costs you incur. You see, your credit score is used to determine your insurance score. If your insurance costs suddenly went up and you have been wondering why a credit score drop may have been the culprit.
Only three states in America prohibit auto insurance companies from using credit scores as a determinant factor, and they are California, Hawaii, and Massachusetts. However, in North Carolina, this is very much a thing. Whatever you do, keep in mind that your credit score will make a significant difference for your auto insurance costs.
Contact Your Current Insurance Agent
Contacting your current insurance agent for discounts or advice on how to lower your insurance costs can make a major difference.
As long as you’re dealing with a reliable insurance agency, you’re bound to get some kind of discount. Of course, some agencies may offer better discounts than others, but there’s no way of knowing until you ask. They may advise you to increase your deductibles, which will shrink your premiums, or bundle your policies to make things easier.
When it comes to discounts, one of the most incredible ones you could get is a multi-car discount. When you insure a single vehicle, you get a higher insurance quote.
However, if you have multiple cars, you get a bulk rate so the agency can insure all your vehicles.
If you have a teen driver that ranks in the top 20% of their class, you may get a student discount. Beyond that, different auto insurance companies in Raleigh, NC, or other North Carolina cities can offer you discounts on car alarms, airbags, anti-lock brakes, and even pay-in-full discounts.
Drop Unnecessary Insurance Coverage
There’s a very vital aspect of auto insurance you must understand. Both collision and comprehensive insurance cover never pay out more than the car is worth. A collision insurance policy pays for repair damages after a car accident that involves another car or object.
A comprehensive insurance policy pays out when a car has been vandalized, stolen, damaged by a storm, or when you hit animals. However, if the car you’re currently driving is worth a lot less than your deductible and what you pay annually, you may want to consider dropping them to save costs.
Beyond that, most insurance policies come with extra features like coverage for roadside assistance or for rental cars. Find out what features are included in your insurance policy and eliminate the ones you don’t need to reduce costs.
Choose the Right Car
If you’re currently in the market for a car, it will save you a lot if you choose the right car? What does the right car mean? You see, insurance costs vary widely depending on the type of car you have.
Some cars have very complex repair issues, others are more prone to theft, while others may be easier to damage. Before you choose the car of choice, ask the insurance company what the premiums for that specific vehicle are. You may be able to lower those costs if the car comes with features that protect the car and the passengers.
Pay Based on Usage
You may be working from home and only using your car from time to time, in which case usage-based insurance may be a better option to save you costs. A reliable insurance agency in North Carolina will have this option, which allows you to pay premiums based on a per-mile program. All you’ll have to do is install a device that transmits this data to the insurance company, and you’ll get a score for low mileage and good driving habits.
Take Out a Multi-Policy Discount
Having a reliable insurance agency as your independent agent can go a long way into helping you save on auto insurance costs. Bundling your insurance policies will reduce your premiums substantially.
Consider having your auto insurance and renters or homeowners insurance with the same carrier. A reliable insurance agency will reward you with a discount for bringing in all your business to them.
Talk to a Reliable Insurance Agency Today
The most important aspect of reducing your auto insurance costs is dealing with a reliable insurance agency in the first place. If you’re currently looking for a professional and credible insurance agency in North Carolina, please get in touch with Amistad Insurance Services for reliable and professional services.