10. Low-Cost and High-Cost Areas – Are you planning to move? If you are, you should take into account the cost of insurance. Generally, the more urban the area, the higher the premium. The costs can vary even within a community.
Fact. Rates can really vary from state to state. If you’re living in New Jersey, Massachusetts or Hawaii, you’re paying several times more, on average, than you would in North Dakota, South Dakota or Idaho.
11. Credit Where Is (Or Is Not) Due – Is your credit record better than your driving record? If you have a good credit record, you could be eligible for discounted premiums from several auto insurance companies.
Fact. Many insurers now use your credit history as a major factor in determining what to charge you for auto insurance. In some cases, with some companies, you could save money by shifting your business to an insurer that uses credit as a rating factor – even if you have a so-so or poor driving record. There is another side to this coin. If you have a poor credit history, you could save money by moving your auto insurance to a company that does not use credit as a rating factor. Many insurers do not use credit as a factor.
Tip. Regardless of your credit status, you should talk to your agent to make sure you have the best situation given your credit record, good or bad.
12. One Call is All it Takes Sometimes – Every so often call your agent, especially if he is an independent agent. Ask if there are ways he can reduce the cost of your auto coverage. Sometimes an agent receives a new company appointment or has special programs that come up from time to time, and he can move your coverage for a lower rate. Many times, if an agent doesn’t hear from a client, they will assume the client is satisfied.