Enter Your ZIP Code

Certain factors that can be varied to reduce auto insurance premiums


Buying auto insurance coverage need not be as expensive as you imagine. It is true that the cost of the premiums is increasing with each passing years keeping in mind the increasing rate of fraudulent claims and other aspects. However, it is also true that the premiums can be reduced by planning wisely and varying certain factors that have a strong influence on the insurance rates. It is important to know these factors so you can purchase the auto insurance of your choice at prices that are easy on your wallet.

The primary factor that has an impact on the auto insurance premiums is how often you drive the car. Customers who travel by car daily to their workplace have increased chances of meeting with an accident as compared to those who use their vehicles sparingly. As that chances of accidents increase, the liability of the insurance provider also increases. They try to minimize their risk by charging higher premiums to such drivers. Therefore, if you want to keep your insurance premiums to a minimum, it is recommended that you curtail your driving needs. Consider using the public transport system to commute to and fro your workplace. Do not use cars if your workplace is closer to home; consider taking a walk instead.

Another aspect that has a bearing on the auto insurance premium is the security features in the car. With an increasing number of cars being stolen regularly, auto insurance providers are apprehensive while offering insurance policies to customers, especially the ones with new cars since the chances of those vehicles getting stolen are higher. Therefore, they charge such customers high premiums to reduce their risk. If you want to ensure the best coverage for your relatively new car without any compromises, the best bet would be to get certain safety devices affixed to your vehicle to minimize the chances of them getting stolen. Insurance providers will reward this move by offering you higher discounts that can help you save money.

The type of the coverage chosen is another factor that has a bearing on the premium. It is important to choose the right type of coverage based on the type of car and its age. If you have a car that is years old and does not have a high market value, choosing the comprehensive coverage can be an unwise move. Choosing the third party coverage instead can prove to be a better choice.