Auto insurance companies will not tell all when it comes to insurance premiums – well, not unless you ask. Do you know that most car owners are overcharged on their auto insurance coverage? Yes and the truth is that you may be one of them. As a car or vehicle owner, you need to know several factors that may affect your auto insurance premium. Educating yourself about this matter will save you some cash on your auto insurance coverage.
Do you frequently drive? Or, does your car stay in the garage most of the time? Do you drive longer miles? Have you heard about the drive less and pay less for your auto insurance? Ask yourself these questions and you will determine if you are being overcharged on car or vehicle premiums.
Just like what most car owners know, insurance companies base their rates or prices on risks carried by each client. If you drive less, your risk of getting involved in an accident is minimized. The same is true if you drive on short distances. Insurance companies have a way of determining if a client is providing them genuine information about their mileage data. By using onboard devices that measures mileage, companies can and will determine if you are illegible for a mileage discount. A mileage discount can save you lots of money in the long run.
More often than not, car owners do not realize how much money they can save just by knowing the factors that affect their premium rates. Not all car or automobile owners use their vehicle very often. Most of them use their car for emergency purposes only. With the high cost of fuel, most car owners save money by driving less. With this you get to save money on gas and at the same time you get to save money on your car premiums or rates.
Another type of auto insurance you may consider is the short term is temporary auto insurance. This is also best-suited for drivers who do not get on the road frequently. With this type of coverage, you only need to use your auto insurance policy when you drive. On the other hand, there is also what others call the one day policies which some auto insurance companies offer. You may need to ask an insurance representative about these policies.
Less risk means lower premiums. However, your driving record still affects your insurance rate. Whether you drive frequently or not, it is still best to keep your driving record clean.