Insurance:  You can control the level of your premiums! 

I know you are aware of the obvious ways that will drive up your rates; driving recklessly, getting too many speeding tickets or even being the one at fault in a wreck.  But… there are other areas that insurance companies are now looking at when they consider premium base.  The more aware you are of the underwriting policies, the better premiums you can negotiate!

Essentially, insurance companies look to anything a driver does that could distract him/her while driving, and… if you are involved in a “distraction” at the time of an accident, your next policy renewal will reflect that distraction or recklessness.

Seat Belts: 

Most states have laws designated to ensure drivers and passengers wear safety constraints.  Some of these laws make it possible to ticket the driver for failure to use seat belts, even if no other traffic violation has occurred; others allow the ticketing only if not wearing the safety constraints are noticed in conjunction with another traffic infraction.  In either case, the citation allows the insurance company to increase rates at time of renewal.

Driving and Texting: 

Oprah Winfrey made it a media campaign; many states have made it a law!  In the states where this is the case, if a traffic citation is processed, even in the absence of an accident occurring, car insurance premiums are at risk of being increased. Some laws are taking such a harsh position about this issue, that if it is determined a driver was texting at the time an accident occurred, the driver could face severe charges and possible time in jail.  You get to make the choices…

Credit History: 

If you feel that your credit history has nothing to do with your car insurance premiums… think again! 

Many insurers have determined that “characteristics” revealed on a credit report increase the likelihood of an insured filing claims.  The credit report data is actually combined with other drive data to create a potential client’s “insurance score” which ultimately influences the size of your premium.  

So… the next time you consider skipping a monthly credit card payment… think again!  Your good driving record will help, but it is only a part of the decision making process for your insuring company.

Adding a Teen Driver: 

I’m sure most parents realize that adding a newly-licensed teen to their policy is likely to increase their premiums, but with some research, you can opt for the most reasonable rates.  I recently noticed a resource through Joel Ohman, a CFP in Tampa, Florida who suggest shopping around, and encouraging your teens to qualify for “good student discounts.”   The important message here is to be aware – in advance – so you don’t get caught at the time of policy instatement, with no choices.

Insurance Installment Payments: 

If you have the money to pay your policy in full – take advantage of that discount.  It may seem easier to budget the expense as a monthly option, but the additional expense is a fee you can eliminate by paying upfront.  Essentially, the insurance company assesses an administrative fee for having to process multiple transactions throughout the year.  Although the fee is typically less than $5 per payment,  and if your goal is to pay less for your insurance, that could be money in your pocket at year end.

I trust that these tips will help you better manage the amount of money you spend on insurance.  And keep in mind, when it comes to insurance, you are best protected when represented by an experienced agent.  I have clients who have gone to the quick stop or purchased online and are ultimately dissatisfied about the rates and the customer service… makes me think that without my services – all you have is insurance!

Visit me at Vital Enterprises, LLC if you would like a complimentary review of your vehicle coverage.