4 factors that determine car insurance that you can change
Are you unhappy with how much you’re spending on car insurance? The good news is there’s something you can do about it. Car insurance companies use many factors to determine how to charge you in car insurance premiums. Some of them are out of your hands (i.e. your age and sex), while many are under your control. Let’s take a look at some factors you can change to lower your car insurance rate.
Your car’s make and model
You may be surprised to learn that the make and model of your vehicle determines how much you’ll shell out in car insurance premiums. Car insurance companies look at how likely your particular vehicle is to be involved in a collision and stolen and how much it’s likely to cost you to repair. For example, if you drive a flashy sports car, while you may get everyone’s attention on the street, you’ll likely pay more in premiums than, say, a family vehicle like a four-door sedan.
Your driving record
Drivers that maintain a clean driving record get better car insurance rates, plain and simple. This shouldn’t come as a shocker. If you’ve been involved in an at-fault collision, all things considered equal, you’ll pay more in car insurance. That’s because you’re more likely to be involved in another collision and file another claim. At-fault accidents is one of biggest factors, so avoid being involved in one at all costs.
How can you lower your car insurance rates? Many car insurers offer discounts to those that take driving course. (You can also learn some defensive driving skills to avoid at-fault accidents.) Also, try to avoid speeding ticket, charges for impaired driving and other driving convictions. Those can cost you dearly as well. They’re like a double whammy. Not only could you have to pay a fine, your car insurance rates may go up, as well—ouch! (Avoid a suspended license, too.)
How often you drive
How often you’re behind the wheel determines how much you pay in car insurance. If you live close by to your place of employment, you’ll likely pay less than someone commuting three hours or more every day (although not always, as those living in the suburbs typically pay lower car insurance rates).
You can save on your car insurance by using your vehicle less often. Consider taking public transit to work and save even more.
Your coverage level
How much coverage you want in case of an accident also affects your premiums. The more coverage you want, the more you’ll pay in the way of car insurance premiums. How can you save? By upping your deductible (just be sure to keep enough emergency savings in case you’re involved in a crash to cover the repairs.)