There are a lot of things about auto insurance which people are not aware of. Some are deliberately not advertised by the auto insurance companies while others have never really been used as much as consumers were supposed to. At the end of the day, however, it is imperative that you know as many nuances of the auto insurance policy as possible and reduce your premium, saving you hundreds of dollars every year.
Good credit history
Yes, your credit history not only affects your credit card and loan applications but also your auto insurance policies. Those who have a high credit history are considered to be less risky and more responsible. The chances of their meeting with an accident and making auto insurance claims are lesser which is why auto insurance companies grant them lower premiums. Therefore one must try and maintain better credit history not only for the sake of lower card and loan rates but also for lower premiums.
Driving courses
If nothing else helps you to get your auto insurance premium down, take a driving course and try again. A driving certification will vouch for the fact that you have better knowledge of the road signals and traffic symbols and you can also drive better. This is definitely going to reduce the risk involved in your driving and therefore your auto insurance premium. In fact, there are special driving courses for 55+ seniors too through which they can get discounts on their insurance policies.
The add-ons
Sometimes you get them for free. At other times, you pay for them even when you don’t want them. Check your policy for chargeable add on features which usually include roadside assistance, tow vehicle services after an accident, charges for rented car during the time your car is at the service station for repairs, etc. If you think you can do without them, you can negotiate for better insurance rates. In fact, it is better to get comprehensive and collision insurance if you don’t have them already, instead of the add-on luxuries.
The car value
If you don’t have an auto insurance loan on your car and it is quite old, you can get rid of collision and comprehensive insurance to lower your premium. This is because if your car is totalled, the value the insurance company will pay you would be less than the premiums you pay for the extra coverage anyway.
