Car ownership is an essential part of everyday life, so insuring vehicles is a competitive and prosperous business. The cost of your policy depends on details like where you park the car, what you do with it, your occupation and your financial stability. With all this in mind, we will consider ten reasons you’re paying too much for your current auto insurance.
10. Paying in Installments
This doesn’t just apply to car insurance. Most businesses, whether in insurance, retail, or almost anything else, will charge a percentage or commission on monthly installments when there is an annual payment option. If you can find the money at the right time, pay your premium all at once. You could save a small fortune in the long run.9. Paying with Checks
If you are going to pay in installments, try to organize an electronic funds transfer instead of sending a monthly check. Not only will this method often save the insurers a small amount (making you a potentially more popular customer), it also means you’re less at risk of missing a payment. With punctual payment comes cheaper premiums and a better reputation for reliability.8. Parking in a War Zone
In some areas the place where you park can make a big difference as to how much you pay. If you live in a rough neighborhood, have a high level of vehicle robberies in your area or have to park on the street, you might be overpaying. Try looking into the option of renting a conveniently located garage. It may end up being cheaper than the extra money you pay to insure your car. You may also want to keep this in mind if looking to purchase a new home or move to a new area.7. Using Separate Policies
It is possible to save a huge amount of money if you combine all of your insurance –home, auto and personal liability – and keep it all within the same insurance company.6. Not Declaring Extra Safety Options
Got anti-lock brakes or airbags? Did you have them installed as an optional extra? If so, check if they were declared with your insurers, as they can lead to discounted rates, provided they are up-to-date. Extra vigilance with regard to providing safety from robbery can also make a difference – for example, including wheel locks and alarm devices.5. Bad Credit Rating
Many motorists are unaware of what a big difference their credit rating can make with regard to their insurance rates. From the point of view of the insurance company, a good credit history equals a more responsible person, which in turn results in lower premiums (however unjust this may seem). If you do have a bad credit rating, it may be advisable to spend some time improving it before you undertake a major purchase such as an annual insurance policy.4. Letting Junior Borrow Your Ride
Most insurance companies consider teenagers to be one of the highest-risk groups of drivers. If the car you drive is already more on the expensive side of the insurance scale, then it may not be a bad idea to exclude your son or daughter from the policy. Not all insurance companies go by this ruling, but it will certainly be something you will come across as you shop around.3. Including Your Better Half
Statistics have shown that female drivers are 70 percent less likely to crash than their male counterparts. As a result, insurance companies consider women to be a far smaller risk. Most insurance companies will automatically alter their rates for you after determining your gender, but for women who share their car insurance with a man, the rates can shoot right back up.2. Car Type
Not in the least bit surprising, the type of car you drive affects what you pay for insurance. According to Insure.com, the lowest average insurance amount for 2010 was for a Mazda Tribute. The highest? The Porsche 911 Carrera. If the statistics are anything to go by, SUVs, trucks, and vans attract the cheapest policies, and fancy sports coupes attract the most expensive ones.1. Past Accidents
If you cause an accident at any point during your driving career, a surcharge will occur and your premiums will increase. The exact amount of the increase is up to the insurance company. In some cases, companies will let a first-time accident go. But if you cause more than one or two, your policy premium will likely to soar in price. Incidentally, in almost all cases, your risk level will increase in the eyes of your insurance company if you are drunk when a crash occurs.CONCLUSION
If you want to save money on your car insurance, there are several things to consider. Whether you are loaning your sports car out to your teenager, or parking on dangerous streets, there are compromises you can make with your insurance agent to get a better rate. Car insurance is subjective, so you always have the opportunity to adjust.
