As a driver, you know the value of having a comprehensive auto insurance policy. Yet, you probably also know the importance of keeping it within your budget. We’ve already discussed a few ways that where you live and your age impact what you pay for coverage. However, there are many other factors at play here. What’s more, most of them are things you can control. Here’s a closer look at how auto insurance rates are more in control.
Remain a Safe, No-Point Driver and a Claims-Free Driver
Numerous factors play a role in what you pay, but none is more important than your driving history. People with several violations on their driving record are more likely to be in a car accident that leads to a serious claim for loss. If you have no points, that means you are likely driving the speed limit and obeying driving laws. This is what insurance companies need to know -are you the type of driver that is a bit more reckless? If so, you’ll pay more.
Alongside this goes claims. There is a direct relationship between driving history and claims history. Now, there are many reasons to file a claim with your auto insurance company including for things you cannot control, such as a storm that damages your car with hail or vandalism. However, many more of the claims we see are related to accidents brought on by distracted driving or speeding. You can control these. To lower your premium, improve your driving skill to avoid claims.
You Need All of the Discounts Out There
Discounts range widely from one insurance company to the next. Yet, most people will qualify for a few discounts. You can control many of these discounts, even if it is just asking your insurance company about the discounts available to you. Here are some of the most common and most impactful discounts you may qualify for right now:
- You’re a good student driver. If you are in high school or college with a good GPA, chances are good you can obtain a lower insurance rate.
- You are a homeowner. Did you know that if you bundle your home and auto insurance together -a decision you can make at any time -you’ll save money overall?
- You’re a senior citizen who does not drive much. As a result of this, you may qualify for a lower insurance premium because there’s less risk.
- The way you pay can influence what you pay. For example, setting up auto-pay is a good way to keep your costs lower. You may also qualify for a discount if you pay for your auto insurance in full at the start of the policy period instead of paying month to month.
- You can elect to take a defensive driving course. This can help to reduce your rates if they have been high before.
Other Key Factors You Control
To learn more about the types of risks increasing what you pay for auto insurance, focus on these areas:
- Boost your credit score to get a lower car insurance premium.
- Raise your deductible to a level that is just at the level you can afford to pay out of pocket.
- The next time you shop for a car, buy one with a high safety rating.
Learn as much as you can from your agent about what factors are impacting your rates. You may learn of a few key things you can do to see a drop in what you pay without having to lower your coverage to do so.