Tips From the Experts: 5 Reasons Why You HAVE to Shop Car Insurance Every 6 Months

August 2019

How much are you paying each month for car insurance? A new study from NerdWallet shows that in 2019, average Americans are spending $135 a month — or $1,600 a year — on car insurance.

In Michigan, rates are much higher across the board. We take the title for ‘most expensive state’ for full coverage at $4,079 a year, and for minimum coverage at $2,500 a year. Keep in mind that these rates are for drivers with clean driving records, no at-fault accidents, and good credit.

Rates can be much higher for younger drivers, those with violations, and drivers with poor credit.

While car insurance is mandatory to be on the road, it’s not necessary to pay the highest rate possible. There are several things you can do to save, and one of them is to shop around for car insurance every six months. Rates are constantly changing, and the credit experts at Best Financial Credit Union have come up with five things you need to know when looking for car insurance relief.

1. Tickets Can Come off Your Record.

No driver ever wants to get a speeding ticket or a moving violation, but it happens and can haunt a driver for up to two years in Michigan, while it remains on record. Make sure you know when tickets come off your record so you can get the lowest rate as soon as you can.

2. Take a Defensive Driving Course

Some insurance companies will offer discounts or lower rates when you complete defensive driving courses. In Michigan, completing a basic driver improvement course (BDIC) can help you get a discounted rate. All you will have to do is complete the course and let your insurance company see the certificate of completion you earn when the course is complete.

3. Your Credit Score Improved

Car insurance companies often look at credit scores to help determine the likelihood of you being in an accident. According to a 2019 State of Insurance Report, moving up from “fair” to “good” credit can save the average American 17 percent a year - and then up to 70 percent if you move up more than a few tiers. Make sure you’re being responsible with credit card payments, as your good standing there can keep you in good standing with a car insurance company.

4. Bundles

Some insurance companies will offer deep discounts if you add more cars to the insurance plan, or if you bundle car insurance with other types of insurance, such as homeowners or health insurance. There are plenty of options to choose from, so picking the right policy for you and your family will require some shopping around.

5. Big Life Changes

Some insurance companies believe big life events, such as getting married or having a baby, signify a greater sense of responsibility and maturity, and offer discounts of up to 15 percent a year. All you need to do is communicate these big life changes to your insurance company, and see what new, lower, rates they can offer.

Get Help From the Experts at Best Financial Credit Union

If you’re riding on two wheels or all four, Best Financial Credit Union wants you to enjoy your ride in style. Not only can their experts help you apply for auto loans, but Best Financial Credit Union also has its own insurance agency on-site to help drivers like you get the best insurance rate possible. Best Financial Credit Union offers competitive rates, free pre-approval, local processing, and friendly, customized service from start to finish. Find out if Best Financial Credit Union is the auto loan provider for you and visit their website.

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