Auto Insurance: Here’s to reducing your costs

Auto Insurance: Reducing Your Costs

Anything related to automobiles can be expensive. And if you do not keep tabs on it, it can easily burn a hole through your pockets in no time. One of the most recurrent expenses that usher in with regards to automobiles, after its maintenance, of course, is auto insurance.

Data collated by the Business Insider suggests that the average cost for car insurance was $1,566 between 2017 and 2019, which wasn’t that long ago. There are several factors, including the state you live in and the model you drive, that contributes to how much a typical driver pays. That does not mean that you cannot reduce the costs of your auto insurance.

Before we dive right into reducing costs, let’s break down some of the factors that contribute to auto insurance costs.

Factors that determine auto insurance prices

Depending on a variety of factors, the cost of your auto insurance may fluctuate. For instance, one can get better rates by driving for an extended period without any accidents or tickets. One can even qualify for lower rates simply as you get older and you show more years of experience in driving. Age and experience are legitimate contributing factors towards determining auto insurance costing.

Enlisted here are some of such contributing factors:

• Age and gender: how old one is and what gender one falls in plays a significant role in contributing to deciding insurance premiums for an applicant
• Marital status: depending on what one’s marital status is, the insurance premiums may fluctuate
• Years of driving experience: the more years of driving experience you have under your belt, the better your chances of securing a discount on your premiums
• Coverages and deductibles: there are several deductibles that exist onto premiums. One just have to have a vigilant eye for those.
• The type of vehicle: the type of vehicle one drives also contributes to the premium cost
• Location of the vehicle: different states offer different insurance rates and therefore the state you are in also plays a role
• Whether the vehicle is used for work or for personal transportation (purpose of the vehicle): if the vehicle one drives is for personal reason or commercial also is accounted for while deciding insurance costs
• Driving record: the better the driving record, the better your chances of discounts
• Claims history: how many times has the driver applied for claims is also accounted for
• Credit history: how regulate is the person while paying premiums and EMIs is also looked at
• Previous history of Insurance coverage: prior insurance coverage and insurance discipline is also considered while deciding costs

Now, let’s dive into the part you are here for - ways to save on auto insurance.

Ways to save up on Auto insurance

One can save up on auto insurance by simply being proactive and having tabs on one insurance detail. One should ideally constantly check for discounts, compare different rates online, and look to take advantage of other options which might just prove to be a lot more lucrative.

There are discounts for good driving, for installing safety equipment and much more. One can qualify for savings by doing any of the following:

• Insure more than one car
• Maintain a good credit rating by paying dues on time
• Get good grades (if you happen to be a student)
• Take advantage of low-mileage discounts
• Increase your deductible
• Drop collision coverage on older cars worth less than 10 times the premium
• Install anti-theft devices
• Remain a long-term customer to a trusted and discount-offering insurance provider
• Have no moving violations or accidents in three years prior to the insurance application
• Have no moving violations or accidents in three years

With these factors, insurance costs can fluctuate. You ideally ought to take charge of your coverage for it to be under control and for you to manage the ebb and the flow, as opposed to being controlled by it.

Hence, it becomes pivotal for you to shop for insurance, research available discounts, and let your agent (if you have one) know that you may qualify for lower costs. Bearing these tips in mind can be handy whenever it is time to renegotiate your premiums or when your insurance nears expiration.