3 Things To Consider When Shopping To Lower Your Car Insurance Rates

7 May 2015 by Elijah Steward

Car insurance is something that every driver needs to have. Not only does it help protect you financially in the event of an accident, it is actually a law in most states. If you currently have car insurance and you want to shop around for a better rate, here are three things you need to keep in mind.

1. The minimum coverage requirements for your state and/or lender.

Whenever you want to see if you can find cheaper car insurance rates, first you need to check on the minimum coverage requirements for your state of residence. It could be that you have more coverage than is required by law, or by your lender if you are making payments on the car. If that is the case, you can greatly reduce your car insurance premiums by dropping down to the minimum coverage required by your state and/or car loan lender.

2. The legitimacy of the car insurance company.

There are a lot of television commercials and online ads for car insurance companies that not many people have heard of. While it can be tempting to go with anyone who can reduce your insurance premiums, you need to make sure they are a legitimate car insurance company first. 

The biggest thing you need to find out is if they have a reputable track record for paying out on valid claims. A legitimate car insurance company will have a good reputation for settling claims. That doesn't necessarily mean they pay out on every claim, but the likelihood that you will have to sue your car insurer over a claim needs to be relatively low.

3. Your credit score has an impact on your car insurance rate.

While shopping around to lower your car insurance rate, your credit can affect the cost of your premiums. While not all car insurance companies will check your credit, some do. And, if you are habitually late on paying bills, you could end up paying more for car insurance even though your driving record is spotless.

If you find that your credit score is preventing you from finding a better car insurance rate, take the time to repair your credit before shopping for a new rate again. Paying your bills on time for a full year and taking care of any accounts in collections can give your credit score a major boost - and possibly lead to much lower car insurance rates for the same amount of coverage you already have. To find out more about auto insurance, contact a company like Randy Yates Insurance Agency.

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