There are a number of things out there that can affect your auto insurance in the long run, but then, there are also some lesser known factors which actually affect your coverage. If you are familiar with these terms, then you might be in a better position to claim a lower premium rate for your vehicle. Although it is not possible to control all of the factors that go into deciding on your auto insurance premiums, some of these factors do make a significant difference when computing your rates. The key is to be aware of them so that you can at least make sure that you are in fact getting the best premium possible.
Believe it or not, your zip code holds a lot of information about your premium. The place that you give as your residential address has a huge say in your insurance premiums and you need to be sure that you are in fact in a safe neighborhood. Many insurance companies pull out the statistics related to auto theft and other such related things before deciding on your premium rates. Hence, it is vital that you reside in a relatively secure area so that your insurance premiums are not jeopardized by the crime that might be around your area.
While it is known that your driving record is consulted while drafting your auto insurance policy, you should also know that your family’s driving record is vital if you share your auto insurance with them. The moment you agree to extend coverage to your family member, the auto insurance company is going to pull up their records and make sure that their driving statistics are as good as yours. Hence, if your spouse is a bad driver, you might end up paying dearly for that. Avoid this from happening to you by making sure that your family members too drive just as safely as you do.
A driver who has ensure that his coverage has been continuous and there never was a period of time when the vehicle didn’t have coverage will be more eligible to lower premium rates than drivers who have had coverage that is intermittent and not maintained continuously. Hence, don’t miss out on the payments of your premium, even if it might be for a short period of time. As much as possible, make sure that you pay all your dues regularly as you might never know when you might end up paying a hefty price for a payment you might have missed a long time ago.
The amount you drive is also something that insurance companies often look into. People who are used to taking the car even to go to the store around the corner might want to consider this parameter. Hence, the next time you have the urge to simply take out your car without a real need to go anywhere far; this should probably get your thinking. Auto insurance companies like drivers who have lower annual mileage than others.
Thus, these are some of the other things that you might need to be familiar with in order to get lower insurance premiums. If possible, try and make sure that you maintain all of these parameters at an optimum level so that you don’t have to pay a penalty just because you didn’t get some parameter right.