4 Reasons Why You Aren’t Able to Get Low Cost Auto Insurance in Chicago

If you feel like you’re paying too much money for your auto insurance policy in Chicago, there could be several reasons why your rates are inflated. To lower costs, it helps to understand how the insurance industry determines their pricing and what you can do to get Low Cost Auto Insurance in Chicago. To help you save money, here are a few of the most common reasons why you might be paying too much for car insurance.

You Aren’t Set Up for Automatic Payments

These days, insurance companies offer substantial discounts to customers who opt to have their payments automatically deducted from their checking account each month. Often, you can save around 15% by making this simple switch. If you feel uncomfortable authorizing an automatic payment schedule, you can usually save around 5% by switching to paperless billing.

Your Driving Record Isn’t Clean

Most people realize that an automobile accident will drive up their insurance rates, but did you know that traffic violations can negatively affect your policy pricing as well? Tickets for speeding, reckless driving and other moving violations will make most insurance companies consider you a high-risk driver if they’ve happened within the last 5-7 years. If your driving record is less-than-perfect, you may be able to lower your rates by successfully completing a defensive driving course. Usually, you can lower your rates by around 10% by taking one of these classes.

You’re Driving a High-Risk Car

The type of car you drive has a huge impact on whether or not you qualify for low cost auto insurance in Chicago. For example, many sports car models cost 3 times as much to insure as a basic coupe or sedan. To save money, consider switching to a car that consistently gets high marks for safety. Currently, the cheapest vehicles to insure are SUVs and crossovers.

Your Credit is Bad

A tarnished credit report can lead to higher auto insurance rates. Insurance companies are relying on their customers’ credit ratings more and more to help determine policy pricing. Often, you can get significantly lower insurance quotes by spending some time cleaning up your credit. Even a 50 point increase in your credit score can lower the price of your policy.

If your insurance rates seem to high, there are probably a few reasons why. With a few easy changes, you may be able to pay a lot less for auto insurance. Contact Great Northern Insurance Agency to know more.

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