Auto insurance is a necessity for all drivers, yet that doesn't mean you don't want to save money. Thankfully, there are a variety of ways to reduce your rates without sacrificing coverage. Here are three simple steps to take.

How to Lower Your Auto Insurance Premium

1. Drive an Older Car

One important aspect considered in the insurance underwriting process is the cost of replacement. As a result, more valuable vehicles are associated with higher premiums because of the provider's potential financial risk if it's totaled. Unless it's an antique, then price and age typically go hand in hand. For that reason, you could save money by opting for a slightly older vehicle instead of a brand new model. 

2. Pre-Pay Your Policy

Auto insurance policies are offered in six and 12-month arrangements, depending on the carrier. It's standard for individuals to pay monthly the duration of the policy, but you also have the option to pay for the full plan upfront. While it requires that you have the lump sum at your disposal when beginning the policy, you may end up saving money in the long run because many providers offer discounts with this approach. 

3. Raise Your Credit Score

There are a variety of non-driving factors that insurance companies consider to evaluate a driver's risk, including credit scores. Lower scores are viewed as risky financial behavior, and while it's not a direct assessment of your driving ability, providers believe that such risky behavior translates to on-the-road decision making. As a result, working to improve your score through on-time payments and overall debt reduction will reduce your coverage rates. 

If you need help finding an affordable auto insurance policy, contact Consolidated Agency, Inc in Rochester, NY. For over 30 years, the independent insurance agency has helped drivers across Monroe County keep themselves protected on the road. They also offer property insurance for homes and businesses. Learn more about their coverage options online, and request a quote today at (585) 467-4110.