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Tips to lower your auto collision insurance cost


Auto collision insurance provides coverage for your car damage repair costs when you are involved in an accident. Some people choose to ignore the insurance to save on the cost. However, in the long run, it is always a safety net to have. Here are some tips to help you lower your auto collision insurance cost. The key is to have a profile which seems less risky to an auto insurance company as far as involvement in accidents is concerned.

Better credit history

Good credit history not only lowers your loan interests, mortgage amounts and credit card interest rates, but it also helps you in getting lower auto insurance rates. Maintaining a good credit history is not very difficult. You need to pay all your bills on time and spend only when you are sure you can repay the card debt. Being consistent over a period of time will increase your credit rating and also help you get a lower insurance premium, without the need to sacrifice on coverage.

Don’t break traffic rules

Simple offences like jumping traffic signals and over speeding on the highway could tarnish your record. The auto insurance company would also perceive you as someone with disrespect for the rules and therefore as someone more likely to be involved in an accident. Your auto collision insurance cost will therefore go up. It is always a good idea to stick to the rules and care for your reputation and record. In the long term you can literally cash in on a good driving record.

Don’t claim for minor repairs

If you claim more often, the auto insurance company will start perceiving you as a driver frequently involved in accidents. If you are involved in minor accidents and your damage repair cost is very low, avoid making claims with the auto insurance company. That way, your future premiums will not skyrocket.

Drive less

You cannot collide with another car if you don’t get on the road. The lesser you drive the safer you become. Even from the perspective of an auto insurance company, your cost would depend on your yearly mileage. Therefore avoid driving if you can. Use public transportation as often as you can. Go for car pooling with colleagues and friends. In the long run it will save you a substantial amount of money in terms of the cost of the auto collision insurance that you own.