Navigating the road of car insurance can feel just as harrowing as a bumper-to-bumper commute. This is especially true if you are labeled a “high-risk” driver, sending your insurance premiums rocketing skyward. But don’t despair, being tagged high-risk isn’t the end of the road. There are steps you can take to lower your premiums and move towards a brighter insurance future. Buckle up as we explore practical strategies to help you lower your high-risk car insurance.
Review Your Driving Record
One important step to lowering your high-risk insurance is reviewing your driving record. Make it a habit to request a copy of your driving record from your local Department of Motor Vehicles. This record shows your driving history, including any tickets, violations, accidents, and points.
It is the mirror through which insurance companies see your driving habits. Understanding what’s on your record can help you identify areas for improvement and take active steps to become a safer driver. Remember, the fewer the infractions on your record, the better your insurance rate.
Steps to Take To Improve Your Driving Record
1. Enroll in a Defensive Driving Course: Many insurance companies offer discounts to drivers who have completed an approved defensive driving course. Not only can this lower your insurance premiums, but the course can also teach you valuable skills to avoid accidents and violations in the future.
2. Practice Safe Driving: The simplest way to improve your driving record is by practicing safe driving. Follow all traffic laws, avoid speeding, and always drive sober. Consistent safe driving will gradually clear infractions from your record, reducing your premiums.
3. Consider a Car with Safety Features: Safe, modern cars equipped with features such as anti-lock brakes, rear-view cameras, or advanced airbag systems may qualify for insurance discounts.
4. Limit Your Mileage: The less you drive, the less likely you are to have an accident. If possible, reduce your driving or consider carpooling, using public transit, or even biking to work. Insurance companies often offer low-mileage discounts to drivers who don’t spend much time on the road.
5. Improve Your Credit Score: Many insurance companies use your credit score as an indicator of risk. By paying your bills on time and reducing your debt, you can improve your credit score and, in turn, lower your insurance premiums.
Improve Your Credit Score
Improving your credit score is a proactive way to lower your insurance premium. The first step is understanding your credit report, which can be obtained for free from major credit bureaus. Analyze your credit report carefully for any errors or discrepancies and report them immediately.
Next, focus on minimizing your debt by paying off outstanding balances and avoiding unnecessary credit or loan applications. Make it a habit to pay bills on time and, if possible, pay more than the minimum amount due. Establishing a healthy credit history not only makes you more appealing to lenders but also makes you less of a risk in the eyes of insurance companies.
Maintaining a good credit score may require discipline and time, but the benefits extend beyond insurance premiums to every aspect of your financial life.
Tips for Improving Credit Score
1. Pay Bills on Time:
One of the most effective ways to improve your credit score is to consistently pay your bills on time. Late or missed payments can significantly damage your credit score. Setting up automatic payments can ensure you never miss a due date.
2. Keep Credit Card Balances Low:
Credit utilization, or the percentage of available credit you’re using, is a major component of your credit score. Keeping your credit card balances low can reduce your credit utilization and improve your credit score.
3. Don’t Close Old Credit Cards:
The length of your credit history can impact your credit score. Even if you don’t use a credit card often, keeping it open can extend your credit history and potentially improve your credit score.
4. Limit New Credit Applications:
Every time you apply for credit, a hard inquiry is made on your credit report, which can lower your score. Limiting new credit applications can help maintain your score.
5. Regularly Monitor Your Credit Report:
Regularly monitoring your credit report can help you identify errors or signs of fraud that could hurt your score. If you spot any inaccuracies, report them to the credit bureau immediately.
Bundle Your Insurance Policies
Another effective strategy for lowering your high-risk insurance premium is to bundle your insurance policies. Many insurance companies offer multi-policy discounts to customers who purchase more than one type of insurance policy from them. This could include combining your auto insurance with homeowners, renters, or life insurance.
Bundling policies not only simplifies the management of your insurance, but it can also result in substantial savings. However, it’s crucial to compare the cost and coverage of bundled insurance with individual policies from other providers to ensure you’re truly getting the best deal. And remember, every insurance company is different, so what works for one may not work for another. Take the time to shop around and find the right fit for your needs.
Look For Discounts
Insurance companies often provide various discounts that can significantly reduce your premium. While some discounts are automatically applied based on your profile, others need to be requested. Here are some common types of discounts to look for:
1. Good Driver Discount:
If you have a clean driving record, meaning no accidents or traffic violations, you might qualify for a good driver discount. Typically, you’ll need to maintain a clean record for a certain period, usually three to five years.
2. Multi-Vehicle Discount:
If you insure more than one vehicle with the same company, you could qualify for a multi-vehicle discount.
3. Student Discount:
Full-time students with good grades may qualify for a student discount. The specifics vary by company, but typically, a “B” average or better is required.
4. Military or Affiliation Discounts:
Some companies offer discounts to active duty military, veterans, and members of specific professional organizations or affiliations.
5. Paperless Billing and Automatic Payments:
Switching to paperless billing and setting up automatic payments can also fetch you discounts with some insurers.
Remember, not all insurance companies offer the same discounts, and eligibility rules can vary. It’s important to ask your insurance provider about any potential discounts you may qualify for. Better yet, shop around with multiple insurers to find the most comprehensive coverage at the lowest price.
About Youngs Insurance Brokers Burlington
At Youngs Insurance Brokers Burlington, we understand that navigating the world of high-risk auto insurance can be overwhelming. Our team of experienced insurance professionals is dedicated to helping you find affordable options and providing personalized advice every step of the way. Contact us today to learn more about our services and how we can help you get back on track as a responsible driver in Ontario.
