Okay, I’ll admit it: I hate insurance companies. They are just as bad as the government. The sad truth is that auto insurance is something we all need and are legally required to have.
Car insurance is not always an option. But, it does make a difference how much you pay. These are the top 4 factors that will affect how much or little you pay for auto coverage.
- Unfortunately, you cannot do much about your personal demographics. The car insurance actuaries, the bean counters who study the statistics, “know” that a male driver under 25 is more likely to be involved in an accident than a female driver. So if you’re a young man, you’ll pay more. We’re sorry. You want to pay less? You’ll see a decrease in your insurance rates if you get married. Why? Why? Because married males are more likely to be involved in accidents than unmarried males the same age. It’s what it is. You can also save money by taking approved driver’s training or driver safety courses. This can often lead to a small discount. Ask your agent for details. Your driving record is more important than any other factor in determining your rates. Rates will go up if you have points or have had an accident in the past three years. If you don’t take precautions, your policy could be cancelled. Your rates can also be affected by how many miles you drive each week. Consider if you could carpool or use mass transit to get to work at least part of the time. You’ll save gas and wear on your car, too. You can also do your part to help the environment. Isn’t that great?
- Your Car Insurance companies will charge more for car insurance if you have a car that is easy to steal. You’ll also pay more for insurance if your car is costly to repair. Have you bought a new car? You will probably pay more. You can lower your rates by having certain safety features such as daytime running lights and anti-lock brakes. If you live in an urban area you may want to consider anti theft devices such as a steering wheel lock and/or car alarms.
- Your Neighborhood When you live in a big city, your car insurance rates are likely to be higher than if it is in the suburbs. This is due to the fact there will be more accidents and increased traffic. Theft is also a constant reality.
- Your Policy What type of policy you choose or what coverages you select will have an impact on the cost of your auto insurance. Consider increasing your deductible if you have an older vehicle. The value of your older vehicle will determine how much it is worth. You don’t want to pay high monthly premiums to cover a collision you might not want to fix. You might also consider dropping some coverages that you don’t use like roadside assistance or medical, if you already have it.