How To Avoid Car Insurance Rates Spike

Auto insurance premiums are modified due to a high number of factors, each one having a different amount of influence. Read our blog find out how to avoid car insurance rates spike. Also, get online auto insurance quotes.

1. Avoid having a bad credit score. Most car insurers consider those with poor credit ratings to be higher risk, and raise rates accordingly. Why? If your credit rating isn’t great, you’ve probably missed a few credit card or mortgage payments, or perhaps written some bad checks. That means you’re a less reliable insurance customer, as you may neglect to pay them at some point. To make sure that your credit is stable, pay your bills on time, do not get into excessive debts and keep your credit balances as low as possible.
2. Avoid being convicted for DUI, speeding or other felonies. Being fined for traffic violation will haunt you for a period of time and will certainly make the premiums increase at the next car insurance renewal.
3. Do not modify the car you want to insure. This is an important factor and it weighs a lot in determining the rates. If you want to add extra parts or customize it, you must inform your insurer about it.  Adding new ignition system, super-chargers, engine, wheels, brakes and so on, will certainly make the car insurance prices go up.
4. Install extra safety devices.  You can easily make the prices more affordable if you add the right components to your car.  Insurance companies will surely appreciate your investments in car safety and reward you with lower premiums and avoiding spike rates in the nearby future. Of course, we recommend you to talk first with your agent and inform about your decision to install security and monitoring equipment.

 

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by Ciprian Gurgu