Why is your car insurance premium what it is? And, what can you do about it? These are common questions many people have mainly because this number differs so much. What you pay for auto insurance is going to be significantly different than what you can expect for your neighbor to pay. There are a number of factors that determine these costs. Some of the largest, though, are ones you can control.
Do You Have Numerous Claims on Your History?
Individuals who have numerous auto insurance claims are a higher risk to insurance companies than those who don’t have any. That’s not to say you shouldn’t file a claim if you are in an accident. Yet, filing several claims within a year or two of each other is likely to raise your costs. The cause of those claims matters, though. For example, if you file a claim due to storm damage to your car, that’s going to be less impactful than filing a claim after getting into an accident due to reckless driving.
Do You Have a Bad Driving Record?
Everyone may get a speeding ticket from now and then. Yet, when you get several of these, it adds up quickly and will likely lead to an increased car insurance premium. That’s because insurance companies know there’s a direct tie between speeding and accidents and other reckless behavior. To fix this, avoid moving violations and other tickets. Work to maintain a good driving record without any points on your license. The good news is that over time, any points you have will begin to fall off, improving your driving record. Be sure to let your agent know when this happens.
Do You Have a Poor Credit Score?
Insurance companies know that those who have a poor credit score are less likely to make payments on time. And, they know that those who have a lower score may also be likely to file more claims. This is based on data and research from companies. Yet, the opposite can work in your favor. By improving your credit score, chances are good you can reduce your auto insurance costs, especially if your lower score impacted your rates before.
Are You Getting Enough Discounts?
Work with your auto insurance agent on this one. Find any available discounts that you may not be getting that you should be getting. For example, most individuals qualify for a claims-free discount if they haven’t filed an auto insurance claim in the last few years. You may also get a discount for paying your insurance bill at one time, at the start of the policy term, instead of waiting to make monthly payments.
Is Your Deductible Too Low?
Your deductible is a key sticking point for many people. It’s nice to see that deductible low because that means your insurance company is going to pay out more to cover any accident you are in or damage you have. However, a high deductible can help to reduce how much you pay in premium costs for your policy. In other words, keep your deductible as high as you can afford to pay out-of-pocket should an incident occur. It could drop your insurance premium significantly by doing this. Just don’t make it too out of reach of your financial ability.
Overall, being a good driver is one of the most important steps you can take to keeping your auto insurance within your budget. More so, you can always ask your insurance agent here at Don Neeley what is really causing your rate. Chances are good; you can control some of it.