It is against the law to not have insurance. If you get into a major collision, you could be held accountable, but if you don’t have coverage, you could see jail time. When it comes down to it, insurance not only protects you in the instance of collision – it also protects the other driver. This is especially the case if there is an injury or death involved.
If you don’t have insurance, all of your assets could be at stake – your home, your business and your other cars. When it comes down to it, there are no laws that say you can’t haggle on your insurance rates. What you have to realize is that insurance agencies base their initial estimates off of a carefully calculated risk assessment algorithm. If you are a more risky driver, you will wind up with high rates. Here is how to effectively negotiate car insurance rates.
- When buying a car – you want to make sure that you find the safest model. The truth of the matter is that having a safe car will give you bargaining points. When you purchase the car and take ownership, you want to bring the car’s safety records to your insurance specialist. Your agent will look over this information and decide if the rate should be lowered.
- Reduce the amount of miles you drive – if you don’t need to drive all day, or even all week, you may be able to relegate your times behind the wheel. For instance, if you only need a vehicle to get to work, you may be able to speak with your agency about lowering the rates according to the number of miles you drive. The truth of the matter is that if you drive over a certain number of miles, which most people do on average, you are effectively raising the chances of getting into a collision.
- Make sure that you purchase a specific type of vehicle or visit a specialized auto insurance agency. If you had a boat, you would probably go to a company likeAnchor Marine Underwriters Inc. – but if you have a specific type of vehicle, like a classic car, you probably want to go to an agency that specializes in covering classic cars.
- Boost your credit score – another thing that will give you bargaining chips is a higher credit score and a cleaner credit report. If you have mistakes and errors building up on your report, you may want to speak with the creditors and fix the errors. If they are not errors, you may want to think about paying them back. Even if you set up payment plans, this will help you get things back in order.
- Clean up your driving record – some serious offenses on your driving record can never be cleaned up, but if you have a few infractions, you may be able to speak to a judge about wiping them off. These items are most likely causing your insurance rates to skyrocket. In the end, you may have to visit a traffic school, but it will all be worth it in the end.