Car insurance companies consider many different factors when calculating the cost of your insurance coverage. While some of these factors can be changed, others cannot. Below are some of the factors you can change to improve your car insurance premiums.
1. Driving History
It is no surprise that a driving history that includes at-fault accidents and speeding tickets would be worrisome to insurers. If you have a poor driving record, you will pay higher premiums. This factor will have the greatest effect on your premiums if your driving history involves accident-related or driving while under the influence (DUI) charges. You can control for this factor by making better decisions, and in time your record won’t affect your rates as many insurance companies only look back so far.
2. Claims History
Like your driving history, your claims history will have an impact on your car insurance rates. The fewer claims you file, the lower your rate will be. You can control for this factor by minimizing the number of claims you file through careful, defensive driving.
3. Your Choice of Vehicle
Some vehicles are inherently more expensive to insure than others. For example, if the car is more prone to damage and/or requires expensive parts, your insurance premiums may be higher. You can control for this factor by selecting a vehicle that lowers the cost of your premiums.
Safer vehicles are also less expensive to insure because injuries and expensive damages are not as likely in the event of a crash. Thus, one way to improve your insurance premiums is by purchasing a vehicle with a better safety rating.
4. Your Credit Score
Many car insurance companies consider your credit score when deciding how much to charge in insurance premiums. If you are able to raise your credit score, it is likely that your car insurance premiums will be lower.
5. Coverage Limits and Deductibles
When purchasing an auto insurance policy, you can choose both coverage limits and deductibles. The coverage limit is the maximum amount of benefits the policy will pay in specific circumstances, while the deductible is the amount you must pay before your policy kicks in.
The coverage limits and deductibles you choose will affect how much you pay for insurance. Higher coverage limits and lower deductibles generally mean higher premiums. However, it is not a good idea to decrease your coverage in order to save money. Having the proper insurance coverage is always more important than your insurance rate. If need to lower your car insurance payments, consider higher deductibles.
In addition to controlling the factors above, you can also decrease your insurance premiums by taking advantage of the following discounts:
- Safe Driver Discount – Having no violations on your record can lower premiums.
- Claim-Free Discount – This discount is available to drivers who haven’t filed a claim within a specific period.
- Paid in Full Discount – The paid in full discount is available to drivers who pay their full premium for a policy period in advance.
- Good Student Discount – If you are a student with good grades, you may qualify for a discount.
Please contact Vanyo Insurance today to learn more.