Lower Your Car Insurance Premium By Following A Few Tips

Posted on December 5, 2016 in Uncategorized

Saving money on car insurance premiums would seem to be ideal in these hard times. Competition has affected the auto insurance market too and the insurance companies are offering ways to make your insurance cheaper to stay ahead. Make the most of it along with making a few marked changes so that you do not end up paying high premiums.

Look around for good insurance quotes: All companies do not charge the same premiums so it would be a good idea to shop around and find companies offering you insurance at lower premiums by way of discounts and after estimating your risk factors. Browse online too and look for good discounts being offered.

A Driver’s Education Course would help: This course is usually a day long and costs about $100. This course will actually teach you how to lower your car insurance premiums. The money you pay for the course will be substantiated in a big way by the huge savings you will make.

Safety features lower premiums: Adding safety features to your existing vehicle will also ensure that premiums are less. Features like good anti-lock brakes, electronic seat belts and air bags on either side would be considered to be safety features by the insurance company and they will reduce the premiums charged. This is a ‘win-win’ situation as adding these will mean more safety for you in case of an accident.

Increase your credit course: Your car insurance premiums are based on your credit ratings. When you increase your credit rating make sure to let your insurance provider know and negotiate a lower rate based on this.

Make your car burglar-proof: If you add anti-theft devices like an alarm, or others that can make your car more secure, insurance companies will consider giving you lower rates. So, you pay less plus make your car more secure.

Fuel efficient cars save on insurance: Cars that are fuel efficient or hybrid are environment friendly and hence cost less when it comes to car insurance premiums. This will also save your monthly expenditure on fuel.

Club all insurance amounts: If you own other vehicles, another car, two-wheeler, homeowners, renters or life insurance, calculate your savings if you purchase insurance from the same company. Chances are they will give you a good deal.

Avoid buying fancy cars or sports cars: If you want to slash the payment made for car insurance, then avoid buying flashy models or sports models. These car models are attached to high insurance premiums that go well above the budget. In fact it would be a good idea to consult your provider about the insurance premium before you buy a new model of car.

If high car insurance premiums on your vehicle are going above your budget, then try the above mentioned ways to bring them down. It may require you to spend further but will save money in the long run. The further spending makes you safer on the road so you are actually paying to stay safe. Car insurance is necessary, but should not cost you the earth.

Factors Effecting Car Insurance Premiums

Posted on November 27, 2016 in Uncategorized

The cost of car insurance premiums varies significantly from vehicle to vehicle and person to person. In fact, many factors affect the premium that you pay for your auto insurance.

As such, the risk associated with an accident affects the insurance premium largely. The higher the risk, the more you have to pay for the insurance coverage.

Factors:

1. Age: Statistics show that younger people are at a greater risk of confronting an accident as compared to older people. Generally, drivers between the age of 50 and 65 are considered as safe drivers.

2. Gender: Women are supposed to make fewer claims than men and considered to be safe drivers.

3. Driving History: Usually, people with a clean driving record attract lower car insurance premiums.

4. Driver Geography: Your residing address also makes a difference in car insurance premium. People residing in areas that have less traffic are expected to spend less on auto insurance as compared to people living in urban areas that have massive traffic. Car insurance premiums differ from zip code to zip code, depending on the rate of vehicle thefts in the local area. If you reside in a high-risk area, your insurance premiums are expected to be higher.

5. Car Type: Luxurious and powerful cars are usually expensive and are likely to be stolen. Hence, may cost more to insure. On the contrary, a cheap car will cost less to insure.

6. Driving Violations: If you have an accident record, then you are at a higher risk and thus, your car insurance premium will be comparatively higher. You may be penalized by the auto insurance company for as many as five years from the date of the accident. However, your premium will get lower with the improvement in your driving records.

7. Credit Rating: If you have a poor credit history, then the car insurance company will charge you a higher amount of premium. You can work on your credit rating to get a better score. This will help you to save on your premiums.

8. Car Parking: Your car insurance premium will be greatly affected by the place where you park your car. If your car is secured against theft and damage, the premium will be low. So, make sure to park the car in your garage and have a car alarm or a tracking device to pay less on premium.

9. Annual Mileage: The car insurance company will also estimate the annual mileage of your vehicle. This is because the annual mileage of the vehicle gives the insurer an idea of the level of risk associated with an accident. This can affect your auto premium to some extent.

To sum up, before finalizing auto insurance, make sure that you compare the rates offered by various local auto insurance providers to get the best deal in car insurance. You may take optimum advantage of these factors and work on to lower your auto insurance rates.

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What Influences Your Car Insurance Premiums?

Posted on November 19, 2016 in Uncategorized

It is a given fact that knowing the details is certainly advantageous for individuals who are entering into different types of transactions. This is also the case when it comes to car insurance. Since the amount of premiums significantly affect the cash flows of policyholders, identifying the factors that affect car insurance premiums is absolutely useful in decision making.

Car insurance premiums are affected by inherent characteristics that policyholders cannot totally adjust according to their preferences. This includes the age, gender and marital status of the policyholders. Insurance companies maintain varying premium differentials that are appropriate to these groups according to various studies that were conducted. As per the age factor, drivers who are younger than twenty five years old and above sixty years old are revealed to be more susceptible to vehicular accidents. As a result, insurance premium rates for individuals in these age groups are typically higher.

When it comes to gender, women are considered to be statistically careful drivers compared to men. This is the reason why female policyholders shell out less premium expense compared to the male ones. Individuals who are married also are given lower premium quotes as compared to single individuals.

There are also factors that are entirely controllable and can be the result of the actions and decisions of the policyholders. This includes the type of vehicle, driving style and record, credit rating, professional responsibilities, profession, mileage counts and car safety features.

Insurance companies tend to increase the premium rates for high-end automobiles that are categorized as high-performance, sports cars, rear-engine models and intermediate performance. It can be formulated that more expensive cars commands higher insurance premiums. This is due to the fact that these car types have more expensive spare parts and is more susceptible to theft.

Driving styles and record also play an important role in car insurance premiums. Insurance companies investigate and examine the driving profiles of their policyholders in order to correspond with the insurance premium offers. People who have traffic violations and accidents in their driving records tend to have higher premiums. Credit rating also has an impact to the amount of car insurance premiums. Insurance assumes that individuals who do not possess good credit rating are financially negligent and this can be manifested in their driving style as well.

The profession of the policyholder also has an effect in the insurance premium rate. Statistically, there has been an observed correlation between risk and occupation of policyholders. If the occupation requires long distance travel or travel in accident-prone locations, the premium rate charges are higher. Premium rates are cheaper for policyholders who work in the office or urban institutions.

Low annual miles driven by the policyholders also reduce the probability of being in a vehicular collision which in turn, results to lower premiums. Vehicles which are intended for business purposes also have lower insurance rates as compared to vehicles that are operated for commuting purposes.

Lastly, car features can also have influence in the rate of the insurance premiums. A vehicle which has safety features and theft prevention gadgets installed in it also cuts the insurance premiums. These features include airbags, anti-lock brakes, chassis quality, tracking devices and burglar alarms.

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