A Guide to Paying for Car Insurance

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Insurance is one of the biggest expenses attached to private car ownership in Illinois and other parts of America. Although there is no denying the value of having insurance, what you should question, though, is the amount you pay.

If you have had your insurance for over six months, there is a good chance that you are probably overpaying for it. That is why you should never stop to request a cheap car insurance quote in Rockford, South Beloit, or Loves Park.

So, how do you know you are paying too much for auto insurance? Here are the red flags to watch out for:

Your Credit Scores Have Increased

Did you know that car insurance rates in the Prairie State are heavily credit-based? According to Consumer Reports, adult, single motorists with a clean driving record and with poor credit pay an average of $1,535 in annual premiums more than comparative individuals with excellent credit. In comparison, motorists with excellent credit scores pay $674 more after driving while intoxicated.

Your credit is an influential factor when calculating your auto insurance premium. While car insurers do not use traditional FICO scoring models, any improvement to your base credit scores should lower what you pay to insure your vehicle.

Your Driving Record Has Improved

Insurance scores predict your likelihood of filing a claim. Therefore, your premium will naturally increase when you receive a traffic offense. It is logical, and it should go both ways. If you have been a model motorist in a while, you can be entitled to a lower rate.

You Have Been on the Road Less

Driving less incentivizes your car insurer to charge you less because you do not expose them to a lot of financial risks. Typically, insurance companies offer low-mileage discounts, so you should seek them out when you have been spending less time on the road in your car.

close up of a car accident

You Have Not Checked Your Insurance Bills Lately

Usually, auto insurance premiums increase due to newly applied fees. Whether you are aware of them or not, knowing you are paying for them and why you are paying for them matters. If you notice suspicious items on your bill, bring them up to your insurance carrier.

Your Policies Have Not Been Consolidated

Insurance bundles are inherently less costly than individual policies because they bring more business to a company. If you get all of your insurance products from different parties, you should strongly consider consolidating them and buy them from a single source to save a ton of cash.

You Have Been Too Loyal

The insurance industry can be hard on loyal customers. Sure, you might have received occasional discounts over the years, but the increases you have endured can dwarf them. The auto insurance landscape is quite competitive, so make it a habit to shop around to get the best deals available for you.

Being mindful of your auto insurance premium is a mark of a financially shrewd individual. Despite its necessity, a policy does not become more valuable when overpriced.