If you think that you’re paying too much for your car insurance, you might be right. Many factors determine how much you pay for your car insurance. By understanding these factors – and changing those that you have control of – you may be able to lower your insurance premiums.
When insurance companies look at your driving record, they look for traffic tickets and accidents. Just one traffic violation can increase your rates; if you have three or more violations, expect to pay significantly more for insurance. And, of course, if you have a history of traffic accidents, you can probably expect to pay a higher rate for car insurance.
Choose a reasonable deductible
As a general rule, the lower your deductible is, the higher your premium will be. If you choose a higher deductible in order to have lower premiums, make sure that you can afford to pay your deductible in the event you need to make an insurance claim.
Shop before you renew
Your insurance company will let you know when it is time to renew your auto insurance policy. Shop around and get quotes from other companies before you renew. There may be better deals out there. When you get your quotes, be sure to look at all the details of the quoted policy.
Buy in bulk
If you have different types of insurance policies, why not get all of your policies through the same company and save money? Ask your insurance company if package deals are offered. If you own a home, you can usually package your home insurance with your auto insurance to save money.
Watch your credit score
Insurance companies look at your credit score when deciding how much you should pay for car insurance. Even if your score is pretty good, improving it can help reduce your insurance costs. If your credit is not that great, improve your score and you should begin to see improvements in your insurance rates as well.
Control how much you pay
The vehicle that you choose to drive is a factor in your insurance costs. Brand new, expensive cars will cost more to insure. Surprisingly, small, cheap cars may also more expensive to insure, so be sure that you take the time to learn the approximate insurance rates for your chosen vehicle.
Get anti-theft devices
By lowering the likelihood that your car will be stolen, you can improve your standing with your insurance company and decrease your rates. Additionally, you might want to familiarize yourself with which cars are more likely to be stolen, as these models cost more to insure.
Car insurance is mandatory for all vehicles that are on the road. While many see this as a “necessary evil,” the fact remains that auto insurance holds drivers responsible for their actions, and consequently help to improve overall safety on the road. Control the factors that you are able to in order to ensure that you pay the lowest rates possible.