Insurance companies set your car insurance rates based on several factors. These can include where you live, the kind of car you drive, whether you are a man or woman, your age, the type of coverage you sign up for, your driving record, etc. Some of these you have control over and some you do not. Let’s look at what can increase your premiums and how you can take the things you can control to help keep your insurance rates within your budget.
What Would Raise My Insurance Rates?
Whenever you apply for a new policy or renew your policy, your insurance rates are subject to changing — or rising. Also, your rates could rise if you add a new driver or vehicle to your existing policy, get in an accident, get a ticket, or even if your state decides to let the insurance rates go up.When you get a speeding ticket, your rates may not rise immediately. You do not have to report it to your insurance company, but they will probably check your driving records when you apply for a renewal of your policy and possibly check it if you decide to add a new vehicle or driver. They may raise your rates then. Remember, though, if you are involved in an accident, report it immediately.
If you add a teenage driver to your policy, your rates will more than likely rise. This is because teenagers are in the age group that has the worst record for accidents, as a whole.
How Can I Save Money On My Car Insurance Rates?
First, drive safely - period. Statistics show for every speeding ticket you are more likely to get into an auto accident. Insurance companies give safe driver discounts that significantly lower rates. If you have a clean record with no points for about three years, you can qualify for some major chipping away at your insurance rates. You also may qualify for discounts in rates, if you use public transportation or carpool because you will have lower mileage on your vehicle and fewer chances for accidents.If you have teenage drivers, look for good student discounts. Many insurance companies offer discounts because teenagers who do well in school translate to more conscientious drivers to them. Also, ask about driver’s education discounts. If you have a child on your policy attending college more than 100 miles away, you may qualify for a discount as well on your rates, since he or she obviously will not be driving your vehicle.
Set deductibles as high as possibly comfortable for you. This will result in much lower insurance rates. You may think it would be scary to pay more for repairs in the case of an accident, but the money you will save in the long run will pay for itself. The higher liability limits will actually save you big bucks if you have a bad accident and end up with huge medical bills for the other person.
If you have collision and comprehensive, again, set a higher deductible. This will lower your overall rates. If you have an older car, think about dropping collision or comprehensive altogether, because the amount you spend on your car insurance actually may have you pay for your car over again in the long run. If you have a newer car, collision and/or comprehensive is still a pretty necessary investment on your car insurance. Towing and roadside assistance may be more hassle and cost than they are worth on your rates, so look into joining an auto club like AAA.
Watch out for the car you drive. Sporty, high-profile cars will cost more on your rates. Either choose something less flamboyant, or you can lower your rates by proving to your insurance company you have anti-theft devices, airbags, anti-lock brakes, etc.
Be sure you shop around for your best car insurance rates. Get as many quotes as you can and be sure you are comparing “apples to apples.” Have the type of coverage you need in mind and talk to each insurance company about the cost for a plan with that particular set-up of coverage so you will be able to compare them equally to know which company is best for you.
D. Blair Thompson