The U.S. has the highest car insurance in the world as a nation, and Louisiana has the highest car insurance rates in the U.S., according to a recent article by insure.com, an aggregator of insurance news. This puts us at ground zero for premiums, which increase a little each year for most carriers. While drinking and driving and poor road conditions do explain some of the disparity, distracted driving is the number one cause of accidents in the country. Insurance companies give little in the way of relief or insight, but luckily, there are a few things you can do to lower your premiums, or at least keep them from going up as often.
Keep A Clean Driving Record
The most obvious way to keep your insurance premiums from skyrocketing is to simply not get in an at-fault accident in the first place. Staying off your cell phone while driving, following the speed limit, avoiding impaired driving, using your signal, and being awake and alert while driving are all key factors in avoiding a car accident. Anyone who has ever gotten in even a minor car accident will tell you that you can see insurance premiums shoot up 30% or more for five to seven years, depending on your driving record and your insurance company.
Pay Off Your Credit Cards
Yes, you read that correctly. Insurance companies use complicated algorithms to calculate your risk as a driver, and they do this on an individual basis. According to marketwatch.com, a stock and trading site, your car insurance premium can increase by a whopping 137% with bad credit. Pay off your credit cards if it all possible or consider consolidating your debt at a lower APR to decrease your overall debt-to-income ratio and always call around to price your car insurance every few years. Surprisingly, not shopping around can cost you money, so make sure to always circle back around and compare rates every few policy years.
Bundle Your Insurance
People who carry more insurance overall tend to get better rates on every policy. For example, you may save a few hundred dollars a year by bundling your insurance with your spouse or child, but you may save several thousands of dollars a year by adding other insurance policies like life or renters’ insurance. Insurance companies typically view people who carry multiple policies as more responsible and therefore offer lower premiums to these individuals.
Driving in Louisiana can be very expensive, but being a safe and responsible driver can go a long way to help you save your hard-earned cash. If you have been hurt in an accident, never talk to an insurance company without speaking to an attorney. If you call the Law Office of Stephen Gaubert, know that you will speak directly to Stephen and not get passed over to an associate attorney. Our law firm is active in the Acadiana community, and we pride ourselves on being compassionate, confidential, and competent.