7 Secrets to Lower Car Insurance Premiums

No matter how careful you are on the road, accidents still happen. This is why state law requires all drivers to carry car insurance. Not only does car insurance protect you and your car from accidents on the road, but depending on the level of coverage you have, it may also cover a variety of other factors. We’ll discuss how to find lower car insurance in the following paragraphs.

Lower car insurance premiums are often times rewarded by lowering your coverage such as collision and comprehensive coverage. Comprehensive coverage pays for damage to your vehicle that is caused by something other than a car accident. This includes damage resulting from hurricanes, hail storms or other types of natural disasters. Comprehensive coverage also applies in cases where your vehicle is stolen or vandalized. Collision coverage pays for damages related to any type of collision. This includes collisions with guardrails, vehicles, buildings and other stationary objects.

Factors To Lower Your Car Insurance Premiums

When determining your car insurance premium, there are several key factors that insurance companies consider to determine your rate. Where you live, the car you drive and how your car is used are just a few of the factors considered when quoting a rate. Here is a look at what factors are considered and suggestions on how to keep your rates low:

1.

High Deductible Can Lower Car Insurance Premiums

Auto insurance companies allow you to select your deductible and whether or not to add additional coverage. These two decisions play a major role in determining your premium. Choosing a higher deductible will result in a lower car insurance premium. Adding coverage beyond the state minimum, such as comprehensive or collision coverage, raises your monthly cost but gives you more financial protection in the long-haul.

2.

The Right Vehicle Can Lower Car Insurance Premiums

Many insurance companies use vehicle safety ratings to offer discounted rates to customers who drive safer cars. They may offer higher premiums for vehicles that are more susceptible to theft, damage or occupant injury. To keep your rate as low as possible, do some research before your next trip to the dealership Pay attention to the safety ratings and other statistics for any car you are considering.

3. A Good Driving Record Can Lower Car Insurance Premiums

Drivers that are involved in accidents generally have higher premiums than those that are accident-free for several years. Keep your rates low by remaining diligent about practicing good driving habits.

4.

How You Use Your Car Can Lower Car Insurance Premiums

The way that your car is used has a major influence on your car insurance premiums. During the quote process, you will be asked how often and how far you drive. The more you drive, the odds of becoming involved an accident increase. Also be mindful that ridesharing for companies like Uber or Lyft may increase your premiums. Reducing your annual mileage will keep rates low.

5.

Where You Live Can Affect Your Car Insurance Premiums

Areas with higher rates of theft, vandalism or car accidents will likely have higher premiums. Drivers living in small towns or rural areas generally have lower premiums.

6.

Sex, Age and Marital Status Can Affect Your Car Insurance Premiums

Car insurance companies frequently offer higher premiums to drivers under age 25. The accident rate among this population, especially males, tends to be much higher. For a better rate, younger drivers should ask about student discounts. Many car insurance companies offer discounts to drivers who maintain good grades.

7.

Your Credit History Can Lower Your Car Insurance Premiums

Certain credit information has been proven to predict the likelihood of future insurance claims. Many car insurance companies may use your credit history when calculating your premium. Maintaining good credit history and paying bills on time can positively affect your premium.

Car insurance can seem overwhelming at first, but it doesn’t have to be. Understanding the various types of coverage and factors that influence your premiums are the keys to keeping your premiums low.

 

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