High Auto Insurance Rates
The vast majority of people are overpaying for their car insurance. Some know it and some do not. Yet, it is one of the ways that you can save money in the present economic state. When it comes to high auto insurance rates, there are a few important considerations to keep in mind.
Why Do I Have High Auto Insurance Rates?
If you are a “high-risk” driver (18-25 years of age), you will have higher car insurance rates than others. A newly-licensed teenage driver will not have the same premium as his parents. If he joins his parents’ policy, the premium will increase. High auto insurance rates will also result from the number of tickets you have received and the number of accidents in which you have been involved. Drivers who have been pulled over for drinking and driving are the frequent targets of higher insurance rates. Another factor is your location. Insurers know that accidents are more likely to happen in a crowded, congested city rather than a country road. Insurance companies will ask where you drive your car the most and raise (or lower) your premiums appropriately so they are protected. The type of vehicle you drive and whether that vehicle is foreign-made or domestic-made will affect your auto insurance rates. Generally, foreign-made cars have higher auto insurance rates.
How Can I Save Money On My High Auto Insurance Rates?
First, when going on the Internet to obtain quotes, be sure to get quotes from at least five different websites. This will produce a minimum of 25 quotes which you can compare and discern the lowest price for your auto insurance needs. Second, if you have more than one policy with the same insurance company, you put yourself into a position to receive a discount. For example, attempt to get car insurance with the same company as your homeowners’ insurance or business insurance. Third, if you own more than one car, put all those cars on one policy. These last two suggestions reward you with savings through “buying in bulk.” A fourth way to save money with high auto insurance rates is to avoid having to file a claim with the insurance company over the first three years of your policy. By staying safe and responsible on the road and maintaining a clean driving record, you should receive a safe-driver discount. Fifth, maintain a good credit history. It is no secret to insurance companies that a poor credit rating correlates with higher risk for a motor vehicle accident, thereby increasing your premiums. This sixth method is especially applicable for teenage drivers and other drivers under 25 years of age. These are both classified as “high-risk” drivers in the eyes of insurance companies. Students who take driver’s education courses in the summer or take a defensive driving course will receive discounts. Maintaining good grades in school will indicate a responsible student. His/her responsibility in his/her studies will translate into responsibility on the road.
I Have High Auto Insurance Rates Because Of A DUI Charge. What Can I Do?
There is no need to feel as if you are permanently stuck with high auto insurance premiums because of one or more drinking and driving violations. First, if you can afford it, raise your deductible. A recommended raise would be from $1000 to $2000 if possible. This will translate into lower premiums. Second, change the type of vehicle you drive. Instead of driving a two-door sports car that will turn heads, choose one of the nicer looking four-door sedans. You will see lower premiums through this change. A third way to cut down the price of high auto insurance rates is to obtain a liability insurance policy rather than a comprehensive or collision policy. Comprehensive and collision insurance give you more peace of mind, but cost more in premiums. A final way is to go to driving school. This is usually mandated after a drinking violation. Do you best to steer clear of driving accidents over the next five years after going through driving school. You will see your premiums decrease. Enter your zip code on the top of the next page to receive your free auto insurance quote and get on the road to decreasing those high auto insurance rates.