Auto insurance companies are known to use varying factors when computing for your coverage rates. In this article, we’re going to discuss a few of them, and hoping that you will learn something useful today.
Your location – Insurance companies need to know where your home address is and if you travel back and forth to this address. It will compute how often you drive this far to get into work and the level of risk while you are traversing these roads.
Let’s just say that point B is your place of employment and you travel by car to get there. The insurer is interested to know how much time you spend on driving. The more time you’re on the road, the higher the possibility of getting involved into a car accident.
If a sizeable time is needed to get from point A to B, then expect high premium rates. If you can’t bear with the rates, then consider taking a public transportation or hop in with one of your co-workers on certain days of the week.
Next are the anti-theft devices on your car. We’ve mentioned this tip couple of times before and many people have benefited by simply doing this extremely simple trick. Invest and install several anti-theft devices and show your insurer that you’re damn serious against stealing. If you secure your car, you’ll likely to receive the discounted rates.
The idea behind is quite simple. Anti-theft devices lower down the chance of your car being stolen or in case someone just did, the chance of recovery is high. Having said that, you can now opt to get a comprehensive insurance coverage and pay less because you just installed one of those gadgets yesterday.
Perhaps you may have heard about Vehicle Identification Number (VIN), which is relatively cheaper and affordable at $30 or less, etch on the car’s window that lowers down insurance premiums. Think of it, for $30 and you get heavily discounted rates already. Also, it pays to buy newer car models with enhanced safety features. You’ll get the same discounts plus a nice and comfy car to drive around.
The safety of the passengers would also count. Make sure they’re protected with airbags or some functional seatbelts (automatic seatbelts are much better) to protect them in case accidents occur. Doing so lowers the injury protection rates because having these extra features at hand reduces the severity of injuries to your passengers.
If you have clean driving records and driving an inexpensive car, but still getting high insurance premiums, then perhaps you might want to look at your credit score. Bad credit is an eyesore not just from your creditors but also to most car insurance companies. This goes by the saying that you need to work on your credit score if you don’t want to be slapped with skyrocketing insurance coverage fees.
Or, since repairing these things take time, find an insurance company that doesn’t care about your credit standing or dealing with people having bad credit standings. Unlike other insurance companies, their computations will not consider how well or bad you are in terms of your financial obligations and just right away give you the quotes that you need without a hitch.
Lastly, if you want the best of the best, complete a driving lesson today. This is the ultimate way to get the best deals from them. If you have just completed a series of driving lessons, insurance companies expect you nothing less but the ability to handle different driving conditions. Theoretically, those who have completed such lessons get fewer accidents in a year compared to those who have not.
