5 Top Factors That Will Help Decrease Your Insurance Rates

I know! I know! You've been patiently waiting for this, and here it is, just as I promised. Now I'm sure we have already seen insurance companies raise rates for different reasons but we all don’t have the money to afford these game-changing rate increases. It would be

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great if the insurance companies would tell us when and how we can reduce our premiums and save us the stress and time from shopping around for a better insurance rate. Well, it just so happens I took the liberty of jotting down a few ways that will help you save money on your insurance premiums.

1. Accident Surcharge & Moving Violation Surcharge Fall-off. Insurance companies know when a surcharge from an accident or a moving violation will fall off your record, but they hardly give you that information without your avoidable, pesky phone call. The fall-off date for a surcharge able accident is easier to determine than a surchargeable moving violation. A surchargeable accident will fall off your record 3 years prior your next renewal. Unfortunately, surcharges can only be removed from your insurance record on the renewal date of your policy and never during a policy period. This is why some insurance carriers only offer a 6 month policy period, because if you had an annual policy period, you would have to wait that much longer to see your insurance premium decrease. Removing Violation surcharges are a little more complicated and the drop off date varies from state to state, but they tend to follow the 3 year rule (give or take a few months). Please understand that surcharges and underwriting criteria are 2 different things. An insurance carrier will remove the surcharge after the appropriate time has passed, but major moving violations may keep you in a higher risk group for up to 10 years. Talk about holding a grudge, Sheesh!

2. DDC/Sponsored Marketing Discount. A course that will help you save on your insurance premiums and make you a more defensive driver is none other than the Defensive Driving Course. The Defensive Driving Course was created to remove up to 4 points off of your driver’s license and decrease your insurance premiums by 10% (Depending on which state you reside). As per the previous paragraph, a surcharge or point for a minor moving violation, will last on your insurance policy for about 3 years but a point will only last for up to 18 months on your driver’s license depending on the state. So if you got a ticket that was over 18 months ago, you may want to wait until your next moving violation to take the course and receive that point reduction. Another discount that’s worth looking into is the Sponsored Marketing Discount, which may or may not apply to your insurance policy or be honored by your insurance carrier. If you are part of any type of organization for teachers, doctors or any school alumni, you may be eligible for that discount; which may save you an additional 3% - 8% off of your insurance premiums. Just ask if your insurance carrier offers this discount, you may be saving money sooner than you think!

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3. Tier Move-up. Since your insurance has the ability to move you down if you were a naughty driver, they also have the power to move you up Weezie Stye!! Most insurance companies have sub-categories for certain types of insuring risks and they normally may have 2 – 4 different companies to match the risk. If your driving history is spotless, you may be in a preferred or super-preferred sub-category. If your driving record is like a long rap-sheet, you may be in a standard or non-standard sub-category. If you maintain a clean driving record for a specified amount of time (2 – 5 yrs), you may be eligible for a tier/company move-up. This is a great accomplishment and it may save you anywhere from 10% - 50% off of your insurance rates!!...That’s one place, I wouldn’t mind moving too!

4. Rate Decrease. Since insurance companies are always asking for rate increases, they can also ask for a statewide rate decrease. Awwww, isnt't that nice?!

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But this does not happen often, but sometimes an insurance carrier will be doing so well financially, they might ask for a state rate decrease. This is usually in an attempt to gain more of the market share; & you thought it was out of the kindness of their corporate heart-NOPE! All this is public knowledge, so keep an eye out.

5. Five Year Good Driver. Most people I know are aware of the 5 year good driver discount, but most don’t know that sometimes that discount is only available for preferred or super-preferred insurance sub-companies/risks. Some companies will also offer Accident Forgiveness if you've been insured with them for the duration of that 5 year clear record. Make sure to read your policies and ask questions on why you may not be receiving this discount.

Hopefully this will give you the tools necessary to defend yourself against an insurance rate increase. This post will also help you in the future, because rate jumps and insurance, unfortunately go hand-in-hand...YOU'VE BEEN ARMED!