This is the second part of our posts on the top ways Arvada and Denver residents can save money on their auto insurance.
If you would like to view part 1, please click here.
4.  Watch Your Credit
Most Insurance companies now use credit as one of the primary factors in determining your rate.  The higher your credit score, the less you pay in premium. They do this because insurance company studies actually show a strong correlation between your credit score and the likelihood of filing a claim.
For those people who may have had a hardship that negatively affected their credit, some insurance companies will consider a life event exception.  Make sure you talk to your agent if you’ve had an event in your life that would qualify.
Also, it is worth noting there are some states that actually limit the way Insurance companies can use this score, and a few other states have even banned their use.
 
5. Pay the Policy in Full
Many insurance companies now offer significant discounts (10 – 15% off the total premium) if you pay for the policy in full rather than dividing it up into monthly payments.  Also, by paying the policy in full you avoid monthly service charges that add $7 – $15 to each bill.
When you take those two things into account, you can save a few hundred dollars by simply paying for the entire policy upfront.
Most agents are used to just providing their clients with a monthly payment option, so be sure to ask what kind of discount you receive when you pay for the policy in full.  Also, ask your agent how much of an installment fee is charged on each bill if you decide to go with the monthly payment option.
Summary
By applying each one of the tips we have provided above, you will save hundreds of dollars on your policy this year and for years to come without having to sacrifice any of the coverages necessary to protect you and your family.
Sources:
A Consumer’s Guide to Auto Insurance, National Association of Insurance Commissioners, 2 June 2011, www.naic.org
Consumer Alert from the Utah Insurance Department: Tips for Saving Money on Auto Insurance, Utah Insurance Department, www.insurance.utah.gov/docs/ConsumerAlert7-25.pdf
Reed, Philip, How to Save Money on Your Car Insurance, Edmunds, 30 April 2009, http://www.edmunds.com/auto-insurance/how-to-save-money-on-car-insurance.html
Which Cars Cost More or Less to Insure, MSN Money, http://articles.moneycentral.msn.com/Insurance/InsureYourCar/which-cars-cost-more-or-less-to-insure.aspx