The first step to lowering your car insurance premiums is understanding which factors are causing the increase in the first place. Calculating insurance costs can be complicated, but the factors that are taken into consideration are relatively straight-forward. Knowing these factors can help you achieve an improvement in your rates.
Choose Your Vehicle Wisely
While many vehicles are relatively inexpensive to insure, some cars are expensive at no fault of your own:
- Vehicles with higher horsepower tend to be more expensive to insure.
- Some models that have a history of being stolen are often accompanied by higher insurance rates.
- Vehicles that are costly to repair also tend to cost more on insurance.
Raise Your Credit Score
History shows that drivers with low credit scores are more likely to file claims more frequently than drivers with higher credit scores. Improving your credit score can also improve your insurance premiums. You can help improve your credit score by paying your bills on time, paying off debt, and keeping credit card balances low.
Make Good Choices on The Road
A good driving record can help you score lower insurance premiums. Factors that might increase the cost of your car insurance include:
- A history of traffic violations like speeding, failing to yield, running a stoplight, distracted driving, or texting and driving.
- Conviction(s) for driving under the influence of drugs or alcohol.
- Being cited as at-fault for one or more accidents in recent history.
You can improve your driving record by making good choices on the road, obeying all traffic laws, and giving your full attention to the road while behind the wheel.
Be Aware of Your Claims History
Your claim history is reviewed by every insurance company that quotes coverage for you, including your own insurance company every time your policy renews. Frequent claims in the past are a strong indicator that you may have frequent claims in the future. Insurance companies will often consider the claim frequency even if the claim payouts were minor.
Aside from being a careful driver you will also want to consider when to file a claim versus when not to file a claim. For example, if you have not filed any claims within 3 years and you get a windshield chip, you may choose to file. If you were in a fender bender this year and then get a chip in your windshield a few months later, you may decide to cover the cost of the window chip yourself to avoid driving up your premiums due to claim frequency.
Check Your Zip Code
Living in an accident-prone zip code can drive up your insurance rates. A suburb or small-town living can give you access to the lowest premiums.
Give it Time
You don’t have control over your age, but you do have something to look forward to if you are in your late teens or early twenties and lamenting over high insurance premiums: your insurance will go down as you get older. Typically, around age 25 insurance premiums start to decrease.
We are kidding! You should not get married just to reduce your auto insurance premiums – but when you do get married, your premiums will typically go down. It is believed that married drivers take fewer risks on the road than single drivers, according to statistics.
To learn more about lowering your rates or getting a free car insurance quote, stop by innovante insurance today. We look forward to meeting you.