How to Get Good Auto Insurance Rates with a Bad Record

By | 2018-09-18T19:56:25+00:00 September 18th, 2018|

Meet Jenny. Jenny is a good driver and has a great record. However, within the last year, she’s had two unfortunate accidents.

One accident happened while exiting her parking space at the grocery store. Jenny backed out of a parking space at the same time the person behind her did. They backed into each other. Because the accident happened in a private parking lot, and both drivers backed simultaneously, the insurance companies were unable to determine who was at fault. As a result, each drivers’ insurance paid the claim for their respective driver.

The other accident happened the morning after a storm. After dropping her kids off at school, Jenny was driving home. The car in front of her quickly changed lanes due to some debris in the road. Jenny was unable to switch lanes due to traffic, so she hit the debris which caused extensive damage to her car. This resulted in another claim.

As we have mentioned before, multiple claims within a 12-month period can negatively impact insurance costs. So what can Jenny—a historically good driver—do about this?

Good news! There are options to help limit the increases to Jenny’s costs.

“Telematic” Devices
You may have heard of the “Progressive Snapshot” or Safeco “Right Track” programs. These are driving programs that involve telematic devices. A telematic device is a small computer that tracks certain driving habits. Before you get nervous about being tracked, it’s important to note telematic devices only monitor things like:

  • How often you drive
  • When you drive
  • How often you use your brakes
  • How hard you brake
  • Etc…

Using a device like this, Jenny can prove to her insurance company that she deserves a lower rate on her auto insurance, despite her claims.

Telematic Device Savings
Jenny can save in two ways: one, she can get an upfront discount for participating in a telematic device program. Two, she can earn additional savings after the device has proven her legitimate driving patterns. The total savings of a telematic device can be up to 20%!

Are there other options?
Let’s say Jenny isn’t comfortable with a telematic device. What else can she do?
To be honest, not much. The only other way to lower insurance costs is to lower her deductible or get an older car that’s less expensive to replace. Part of what makes insurance costly is the expense of replacing the insured item. Expensive cars are pricier to insure.

Are you interested in saving money on your car insurance? Perhaps you’re thinking about a telematic device? Schedule an appointment with our wise insurance advisor below. We would be happy to help!


About the Author:

I am a Christian, husband, dad, business owner, loan originator, insurance agent, sports enthusiast, big Cubs fan, servant, and more. I am a native of Arizona that grew up on a dairy farm in Buckeye. I attended Arizona Christian University majoring in Business Administration and Christian Ministries. NMLS #161533