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Lower Your Auto Insurance Rate with These 5 Tips


It has been six months since you found your affordable auto premium and now it’s time to renew.

But there’s only one problem.

Your insurance company auto renewed your policy at a new price you can’t afford.

There’s nothing more annoying than an insurance company who suddenly spikes your premium without notice and for no apparent reason.

That’s why you need to know the simple secrets that can keep your insurance rate affordable.

But most insurance companies won’t tell you these secrets (unless you ask) for fear of losing their money by helping you save yours.

Take heed.

We want to give you basic tips to lower your insurance rate.

However, please know that a couple of these tips must be done BEFORE you purchase a vehicle.

Shop Around and Compare Policies

You can do this step at any time, but sooner is better than later.

Don’t you want to cut costs upfront rather than after your premium soars?

Working with an independent agent can help. They are able to shop around for you and help compare prices.

This is the easiest way to get a lower rate by first looking for the lowest rate.

Boost Your Credit Score

Some states prohibit insurance companies from using credit as factors for insurance rates.

Unfortunately, Michigan is not one of them.

Boosting your credit won’t happen all at once, but it’s important to do what you can to raise your score.

The higher you can get your score, the better insurance rates you’ll be offered.

Do You Need That Coverage?

Don’t pay for more than you need.

If you have an older vehicle, it may be cost effective to remove your comprehensive insurance coverage on that vehicle.

Talk to your insurance agent and find out what removing comprehensive coverage would do for you.

Make sure you’re only paying for what will best suit your needs.

Get Your Rate Before You Pay

Did you buy your car without checking the insurance rate beforehand?

Big mistake.

You should always get a quote before you buy a car.

We know it’s exciting purchasing a new vehicle, but your first month’s auto premium won’t be exciting if it’s more than you can afford.

Bear in mind that other factors contribute to your insurance rate.

Before you make a final purchase, consider how insurance companies look at other aspects such as:

  • The make and model of the vehicle (more expensive or newer means a higher insurance rate)
  • Whether this make and model is associated with accidents, theft, vandalism, and expensive repairs etc.

Keep this in mind before you make a purchase.

Be sure to talk to your insurance agent about any concerns or questions you have regarding your quote.

Do You Qualify for a Discount?

Do your research!

You can qualify for a discount based on several circumstances:

  • Teens or students under your policy with good grades
  • Bundling your insurance policies
  • Allowing the insurance company to track and monitor your driving via a device placed inside of your car
  • Taking a defensive driving lesson class
  • Keeping your mileage low

Don’t be afraid to ask your independent agent what discounts are available and whether you qualify for any of them.

Even if we’re not your insurance agent, we’d be glad to help you with your auto insurance concerns and questions.

We shop for your coverages with leading, high-quality and established insurance companies to get you the best combination of price and coverage.

Reach out to us and we’ll make sure that you’ll sign an insurance agreement that is customized to fit your needs!

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Allied Insurance Managers's Bio

Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.