It makes sense for automotive insurance costs to be directly related to what you drive and how well you drive. But, you may not realize the impact that factors not related to driving can have on how much you end up paying. If you want to reduce your car insurance premiums, you should go through the process of making positive changes to your driving habits to save money, and eventually increase your credit score.
Make Adjustments to Your Driving
While you can save money by cutting back on the grocery bill or using your air conditioner less, you can also make adjustments to driving habits that will provide you with savings. Walking, biking, organizing carpools, and using public transportation in the form of a light rail, bus, or street car are a few ways to reduce fuel costs.
Also, when you drive less, you have a higher chance of becoming eligible for a low mileage discount, which usually starts between 10,000 and 7,500 miles per year. This is due to a lower chance of accidents with you being off the road—helping to keep you safer as well as allowing you to enjoy a cut in car insurance premiums.
Apply Savings Towards Paying Off Debts
Take the savings from lowering your fuel consumption and insurance discounts to pay off your credit cards. This way, through two habit changes, you can start making improvements to your credit score. Since one of the most important factors in determining your credit score is the utilization, you should aim for a 10% to 30% utilization rate.
Contact Insurance Providers for a Reassessment
Once you have spent several months or an entire year working on your credit score, you should ask for a reassessment from insurance providers. They should be willing to oblige as the competition is substantial, and then you can see how much your credit score will have made a difference. Even if you did not get great quotes from certain providers before, their rates and discount percentages could always change.
Although adjusting how you drive is not going to directly impact your credit score, it will help you save money that you can use to pay down credit cards and increase it that way. While you can certainly save money on car insurance by being a good driver, you should not pass up the opportunity to lower your premiums in other ways, and your credit score is a perfect place to begin. Contact a local outlet, such as http://www.unitedsecurityagency.com, for further assistance.