Car prices hit a record high. Why, and what that means for you.
June 18, 2021
July 31st is National Mutt Day!
July 21, 2021
Did you know the average American pays $1,674 a year or about $140 a month on auto insurance?* Like it or not, it’s a necessity if you own a car however it doesn’t have to be so expensive.
Want to try and get a better rate? Here are three things that might be impacting your auto insurance premium.
- The make and model of your car is a major contributing factor in how much you’ll pay for insurance. Some cars are cheaper to insure than others. Insurance companies will charge less to insure safe vehicles, as they’ll pay less for any claims you make. For example, a car with a high safety rating could get you a small discount. Likewise, some types of vehicles are statistically more likely to be stolen, including the Honda Accord and any full-size Ford pickup. Rates for those types of vehicles can be more expensive to insure as a result.
- The more traffic violations you have, the higher your insurance. Traffic violations and car accidents can result in a premium increase of upwards of 200%, compared to what you were paying before the incident. Your premium increase will depend on a couple of things: the severity of your violation and whether you’ve been convicted in the past. Typically (not always though) traffic tickets and accidents will drop off of your record in three to four years, allowing your premium to go down again.
- In most states, insurance companies will charge you more if you have poor credit or no credit history. Much like getting a loan or applying for an apartment or a mortgage your credit score will impact whether or not you get insurance and how much you pay. Only three states have banned insurance companies from using your credit score to factor into your insurance costs (California, Massachusetts, and Hawaii.)
With that said, there’s a few ways you can save!
- Shop around! Did you know Caro can not only finance your home and car, we can insure them too. CLICK HERE for a free quote.
- Improve your credit score! CONTACT US for a free credit review. Not only could you save money on your insurance but you could reduce the interest your paying on loans and credit cards you have!
