Raising your deductible should lower your premium. When you have a high deductible, you are assuming more risk if you’re in an accident. With a low deductible, you are assuming less risk. So a policy with a high deductible typically means cheaper car insurance and vice versa.
If you’ve got a clean driving record with minimal violations, you should have more affordable car insurance than if you have several violations. Individuals with a track record of safe driving can expect discounts, while those with violations and chargeable accidents will have more expensive car insurance.
The type of vehicle you drive and its features also affect your premium. If you have a newer, expensive vehicle, you will probably pay more than if you have a slightly older, less expensive vehicle because repairs tend to be less for older vehicles. Safety features like anti-lock brakes, airbags, blind-spot warning and automatic seat belts can also reduce your premium. If you finance your vehicle through a bank, you can expect to pay more than if it’s purchased outright.
Driving in a large city with a high volume of traffic increases the chances for an accident. Living in a small town with a lower volume of traffic decreases the odds of an accident. That’s why you’ll usually pay more in an urban location than you would in a rural setting.
Knowing how rates are determined can help you find cheap car insurance and adequate coverage.
Insurance companies use a person’s credit score to determine how much to charge for auto insurance. Individuals with a lower credit score are thought to be higher risk than those with a higher credit score. Consequently, a higher credit score often means cheap car insurance, and a lower credit score means more expensive car insurance.
How to Save Money
- Choose a policy with a high deductible. Just make sure that you have enough to pay your deductible if you’re in an accident.
- Maintain a clean driving record. Periodically obtain a copy of your driving record from your local Department of Motor Vehicles office to ensure that it’s correct and any points have fallen off.
- Opt for a slightly older vehicle model with plenty of safety features.
- Move to a lightly populated, rural location.
- Improve your credit score by reducing credit card debt, paying your bills on time, paying off debt, etc.
Knowing what car insurance providers look at can help you find a reasonable premium. If you’d rather have a professional on your side while you are shopping for car insurance, give us a call. We can help you compare a variety of car insurance policies and ensure your car insurance policy provides you all of the coverage that you need in a price range that fits your budget.