Choosing Better Insurance

Auto insurance is a necessary expense for drivers, but the cost of premiums can vary significantly based on a range of factors. In some instances, you can make changes to reduce your premiums.

More Controllable Factors

Your driving record not only affects premiums, but it can also affect how hard it is to become insured. If you have a history of accidents, traffic violations, or other driving infractions, you will likely pay more for insurance than someone with a clean driving record. This is because insurance companies view risky drivers as more likely to file a claim, which increases their risk and drives up costs. Making a point to drive safely can reduce your premiums over time.

Insurance companies use credit scores as a way to assess risk, with lower scores indicating a higher risk of filing a claim. As a result, drivers with poor credit may pay more for insurance than those with good credit. If you have little or no credit history, this does not work in your favor. You will generally pay more in premiums. Since there are resources to help build credit without using credit cards, such as bill and rent payments, try registering for these services if you have no or poor credit.

More expensive cars generally result in higher insurance premiums. Similarly, cars with a high theft rate may result in higher insurance premiums because they are more likely to be stolen and/or damaged by thieves. If you want your insurance premiums to be more affordable, you should consider choosing a different vehicle, such as one that is an American brand because it is easier to acquire parts if the car needs to be repaired. Locking your car doors, taking valuables out of your car, and parking in a closed garage can help reduce the chance of theft.

Uncontrollable Or Less Controllable Factors

Younger drivers, especially those under the age of 25, tend to pay more for insurance because they are statistically more likely to be involved in accidents. Similarly, male drivers typically pay more than female drivers because they are also considered to be higher risk. At some point, age can start working against you again. Senior drivers may find their premiums begin to increase again because their risk of accidents begins to climb again.

Often drivers have limited control over the environment where they live. Drivers who live in areas with a high crime rate or a high incidence of accidents may pay more for insurance than those who live in safer, less congested areas. Additionally, drivers who live in urban areas may pay more than those who live in rural areas because the risk of accidents is generally higher in cities. Even the small difference in zip codes from one part of the city to the next can drastically affect your premiums.

Many factors affect your insurance premiums. In some instances, these factors may be within your control. Choosing a different car and driving differently can make your insurance more affordable.

For more information, contact an auto insurance provider near you.