Many zipcodes in the greater Phoenix area suffer from high car insurance rates due to the large number of vehicles on the road, and high incidents of accidents. If you live in or drive to Phoenix, you understand already.
How can you lower your insurance premiums if certain zipcodes are already at a high premium?
1) First of all, work on improving your credit score. Most Arizona insurers today use credit when they calculate their insurance premium. So if you have less than stellar credit you are paying higher rates for two reasons now (zipcodes and credit). Until the State Legislature changes the rules, credit scoring is here to stay. Credit scoring is almost the most important tool in rating your premium, to some insurers. It is vital you work to have a good score.
2) Consider carrying a higher Collision deductible. Often you can see a decent savings by increasing your deductible to $ 1000 versus $ 500. Have your agent run the numbers.
3) How old is your car? Run Kelly Blue Book or use another service that will give you an estimated value of your vehicle. At some point, the cost to insure versus the value makes it better to carry liability only. Use this suggestion with care. Consult with your agent.
4) Shop around with an Independent Insurance Agent. Some agencies can compare rates with 5 – 15 different top rated carriers to find better rates. Just because you like your agent – it is no reason to overpay.
Finally, insure your home and auto together. Sounds simple, but lots of people do not.