3 Ways to Decrease Your Auto Insurance Premiums

You are required to have auto insurance by law. This doesn’t mean that you should be paying through the nose for it though. There are a few things you should look at before getting auto insurance to ensure that you are not paying too much.

When you are assessed by an auto insurance company prior to taking out a policy, there are many things that they look at. The top three are demographics (of which is age is the major decider of high/low premiums), the car you are buying and your driving record to date – the rest of the factors taken into account are small and could usually only shave around a percent each.

So without further ado, how do you use the big three to your advantage?

The Age Factor

The older you get, the less you will pay for auto insurance. While insuring teenagers in extremely expensive, many can be added onto their parents’ auto insurance policy. Do not think that your insurance covers anyone that drives your car and has permission – rather be safe than sorry.

The problem comes when leaving home (either graduation or hitting the age of 21), as then the parents car insurance policy cannot be used.
The milestone is 25, when you should demand from your auto insurance company to decrease the premiums (statistically, after the age of 25, people become much safer drivers). Unless you have been involved in an accident very close to your 25 birthday, your premiums could drop by a significant amount.

There is also the other side of the age gap. If you are 65 and older, insurance rates will go up – the logic and statistic speaking volumes about decaying eye-sight and decreased reaction speed.

Shopping around is what will give you the best prices and the internet is a valuable resource when it comes to shopping around – particularly for insurance.

Your Car

 The second factor taken into account is, of course, the car. Your insurance premium will be directly affected by the cars price and the price and availability of spare parts; however, there are other things to take into account. Is the car a high target for theft? If you are looking to buy a car that is easy to steal and a target for thieves, expect to pay more.

Also, SUV’s can be either good or bad. The amount the insurance will have to pay out if you are in an accident is higher, due to the robustness of the car. However, it will also shield you pretty well in the case of an accident and since accident insurance covers certain medical costs, it can be very beneficial to drive a car that will protect you. If you have a clean driving record, with few tickets and no previous claims - coupled with sky high medical costs that do not see a plateau on the horizon – could mean that you should think about buying that SUV you’ve always wanted.

Your Driving Record

When looking for auto insurance cover, before you go out and check prices – make a checklist of all the accident you have been involved in and tickets you have gotten. If the picture looks unfavorable, then you are most probably going to have a problem with demanding low premiums.

The one fact is that the penalties applied to bad drivers tend to diminish with time. If you were involved in an accident in your youth and have had none since – fear not! Experience counts in the actuaries little black books, and you will not be penalized. If you were involved in a pile up a month ago that was caused by you – well, the best way to decrease your premium is simply by being more cautious when driving.
This is often the factor that you have the least control over, seeing as you are in an environment with many many other users, but do not be fooled – caution on the road definitely does pay and the insurance company will take into account if you did not cause an accident.

The best way to find a saving is to shop around and the internet is an invaluable resource.  *insert shameless plug here*. After all, even with the perfect record and the appropriate age – you could probably find a better auto insurance company, and it needn’t even take much of your time.

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