How to Get a Lower Rate on Your Auto Insurance

How to Get a Lower Rate on Your Auto Insurance

Does your auto insurance premium seem to keep going up? Even if you get a new car with the buy here pay here dealerships Denver, you’ll still have an opportunity to get a rein on your auto insurance costs with these ideas for lowering your rates.

Encourage Your Teen to Get Better Grades

If you’ve recently added a teenage driver to your policy, no doubt you were in for a nasty surprise when you received your next premium bill. Teen drivers are one of the most common reasons for rate increases on auto insurance policies. However, you can get some relief on that raised premium if your teen gets good grades. Some auto insurance companies offer a discount for teens with a certain minimum GPA. The reasoning is that better students make better drivers.

Encourage your teen to get better grades so your discount can kick in. This is an especially good incentive if your teen contributes to the cost of the auto insurance, since their portion will be smaller.

Submit to a Driving Sample

Better drivers can enjoy lower rates on auto insurance. One well known auto insurance company will give you a better rate if you allow them to sample your driving habits in real time. They will send you a device that connects to your car’s computer. Then they record your speed, mileage and overall driving habits.

If you’re willing to submit to a driving sample, you could save up to 30% off your rates, assuming you are a responsible driver. Typically, this just consists of a simple device that plugs into your car. The data is recorded and transmitted to the insurance company. No further action is necessary on your part.

Secure Your Vehicle

Auto insurance rates are calculated with a complicated algorithm. But among the factors influencing your final rate is your vehicle’s security. If you live in a crime-ridden area with no garage and no anti-theft mechanisms installed, you’ll pay more than a person who lives in a safer neighborhood and who houses their car and uses a car alarm or other theft deterrent.

Whatever extra security you can provide for your car, you should do. Whether it’s a new car garage, a car alarm, or a steering wheel lock, report it to your auto insurance representative. Chances are, they’ll give you a break on your rates because of the extra security.

4 Things to Do Before Buying a Car From a "Buy Here Pay Here" Dealer

For those with less-than-perfect credit, it can sometimes be difficult to get approved for a traditional vehicle loan. For this reason, many people in this situation turn to "buy here pay here dealerships denver area. These dealerships offer their own financing rather than going through a bank or other formal lender, which means they're able to approve just about anybody for a car loan. Still, there are a few steps all prospective buyers should take before finalizing a purchase though a buy-here-pay-here dealership.

Pull a Copy of One's Credit Report It's always a good idea to start by obtaining a free copy of one's credit report. This can be done through contacting any of the three main reporting bureaus in the United States. This provides an opportunity to review the report itself and ensure that there are no mistakes that need to be disputed. For those with a high enough credit score, it may not even be necessary to borrow through a buy-here-pay-here dealership. Research the Fair Purchase Price For those who are still planning on buying through a buy-here-pay-here dealership, the next advisable step is to consider the type of car one is interested in.

By narrowing options down to a few different makes and models, it's then possible to research fair purchase prices in one's area for those particular vehicles. This will help to ensure that, when it comes time to negotiate with the dealer, buyers are able to get a fair price. Review Loan Terms and Interest As with any bad-credit loan, it's possible that interest rates on a buy-here-pay-here loan will be higher due to the inherently greater risk involved for the lender. For this reason, it's a good idea for buyers to review their specific loan terms (including monthly payments, interest rates, and repayment periods) to make sure it's something they can comfortably afford.

Compare With Other Local Dealers Finally, keep in mind that not all buy-here-pay-here dealers will offer the exact same financing terms. This is why it's never a bad idea to shop around in order to find the absolute best terms possible. Even a slightly lower interest rate can make the difference of hundreds or even thousands of dollars in repayment down the road. By taking these steps before buying a car from a buy-here-pay-here dealer, anybody can find the car that's right for them.