High fuel cost, primary commodities’ prices on hike, more and more people losing their jobs - all these are signs of economic distress and we all need to save money in order to survive. Almost everyone is seeking ways to save on expenses and if you are a car owner, it is important to find ways on how to save up on your auto insurance premium.
There are actually a lot of ways to save on your auto insurance premium. All you need to know is to be familiar of several factors that affect your insurance rate. It is important to know that insurance companies do give discounts and you need to know how you can qualify.
Risk is the basis of any insurance rate. To avoid paying too much for insurance premiums you have to prove that you are not a risk to insurers. The rule is simple, the higher the risk, the more you pay for insurance premiums and vice versa.
Your driving record can be a factor affecting premiums. If you get several traffic violations, you are more likely a high-risk client. Therefore, your chance of qualifying for a discount is minimized. A single speeding ticket can add to your risk factor, so always keep a clean driving record as much as possible.
Your car can also bring risk factors. If a car lacks safety features such as airbags, anti-theft alarms and anti-lock braking system, then you are passing away your chance to qualify for discounts. If possible, try to add safety features. The safer your car, the more you qualify for discounts.
Driving mileage is also a big factor for discounts. Insurers do give mileage discounts for those who drive in short distances. The reason behind this is that companies believe that the shorter your driving distance, the lesser chance of getting involved in an accident. You may qualify for mileage discount if you do not frequently drive or if your car stays much of the time in the garage.
Age can also play an important role. The older you are, the lesser you drive. Being an old driver provides many chances in qualifying for discounts. Insurance companies consider older drivers more experienced and less likely to commit driving mistakes. Moreover, they do not drive longer distance since they tire easily. This means that older drivers are less-risk clients.
You really do not have to pay much for car insurance premiums. Always ask your insurance agents about the discounts they offer. You never know if they are telling you everything. If you show them you know more about qualifying for auto insurance discounts, you are in a good position of saving more money from premiums.