Lower Your Auto Insurance
By Teresa Ambord
Besides your driving record, do you know what factors affect your insurance? Some you can change, some you can't.
- Your age: obviously, you can't change that. It's a fact that the drivers who have the most accidents are at both ends of the spectrum, the old and the youngest.
- Marital status: married people are generally considered more settled, therefore safer drivers.
- Gender: don't listen when men exclaim "women drivers!" Insurers will tell you, women are safer drivers.
- Location: living in a big city will likely result in much higher rates than if you lived in a rural area. Then again, rates can change when you move across the street.
- Credit rating: insurers view a person with poor credit as generally a poor risk.
- Driving record: obviously, moving violations will cost you.
- Accident claims: whatever your driving history is, work on cleaning up your record for the future.
- Occupation: it may seem unreasonable, but insurers have shown that your occupation affects your risk.
Tips for Lowering Your Insurance Cost
- Increase your deductible: if your driving record is good, you may never need your insurance and you'll save up to 10 percent by doubling your deductible from $250 to $500. But you should only do this if you can handle the deductible in case there is a collision.
- Consider the value of your car: If you're driving an old beater worth only $1000, does it make sense to have comprehensive or collision coverage? Should you have an accident, your insurer will only cover the cost to replace the beater, which may be less than several months of premiums.
- Guard your credit score: pay your bills on time and don't go wild getting new credit cards just because you can. Insurers frown at those who are over-extended or who they suspect may not pay their insurance premiums on time.
- Don't drive a hot car: family-type cars are likely to be insured for less than cars that are high-profile, likely to be stolen, or that by their nature, encourage fast driving.
- Garage your car: a car that spends the night in a garage is less likely to be stolen, vandalized, or struck by passing cars.
- Drive less: this may be hard to do, but it's a fact that your insurance rates are based on the average miles per year that you drive.
- Drive safely: obviously fewer violations and accidents will improve your rates.
- Install anti-theft devices: a car alarm or other device that decreases the likelihood of theft will comfort your insurer.
- Shop around: different companies really do charge less. Sometimes the companies claiming to have rock bottom prices are quite high.
- Move: choose to live and work in a less-trafficked area where rates tend to be lower.
Discounts
The U.S. government suggests that you check out these discounts when you comparison shop for insurance:
- $500 deductible
- $1,000 deductible
- more than one car
- no accidents in three years
- no moving violations in three years
- driver training courses
- defensive driving classes
- anti-theft devices
- low annual mileage
- air bags
- anti-lock brakes
- daytime running lights
- student drivers with good grades
- auto and homeowners coverage with the same company
- college students away from home
- long-time customer
- other discounts
Click here to see what coverage the insurance laws in your state require: