The current economic hardship that we are experiencing today has already manifested in our auto owners insurance policies. Every time, it is more difficult for us to locate a cheap auto insurance policy that fits our household budget. The prices of car parts have risen as well as the cost of repair resulting to a high car insurance premium. So, in these times, how can we achieve cheaper auto owners insurance? There are other factors that affect auto owners insurance premium that one can manipulate in order to have a cheaper rate.
One of the things that can help you get a lower car insurance premium would be a higher deductible. A deductible is the amount of money you are willing to pay out of your pocket when you file for a claim. Now, if you have a low deductible, the higher the premium will be but if you have a higher deductible, auto insurance companies can give you a significantly lower premium. Let’s give an example. If you chose a $600 deductible and you were in an accident that cost $1200, you will be paying $600 because that is your share. The rest will be paid by the auto insurance company. Now, the higher the deductible that you have, the higher the amount that you pay initially before the car insurance company takes over. However, if you chose to just pay a minimum amount for the deductible that means the car insurance company will be taking care of the whole lot of the accident. And because car insurance companies would like to protect their assets and would not want to shed more money in these cases, they will be charging you a higher premium. So, if you are sure that you can drive safely and avoid accidents, you might as well get a higher deductible so you can be given a lower auto owners insurance premium.
Your credit history is another important thing that affects your car insurance premium. Your premium is the amount that you to auto insurance company for them to be able to cover you in case of car accidents. This is paid through a payment plan. This can be annual, bi-annual, or monthly. Now, if you have bad credit history and a very low credit score, they might not grant you the policy because based on your credit history you will more likely pay late or not pay your dues at all. They would not want that. So, having good credit history may actually get you cheap auto owners insurance.
