There are a number of factors that affect auto insurance rates in the United States of America. We shall discuss each one of these factors and give suitable solutions to overcome the same.
The most important factor is the type of insurance coverage that you have chosen. Fully Comprehensive insurance or first party auto insurance gives you better coverage. It is a no fault insurance, which means that you will be paid no matter which party involved in the accident, is at fault. But comprehensive insurance is also more expensive. It also covers you against losses due to accidents with inanimate objects which do not have insurance. Like in the event of banging your car against a tree or a lamppost, you can still claim for insurance.
Third party insurance is cheaper. But it gives protection for only those accidents in which you were the party at fault. It will not cover you for cases where you have an accident with people who are not covered by auto insurance. It needs you to show fault in order to claim insurance.
Secondly, auto insurance rates depend on the cost of your automobile. A costlier vehicle with more accessories will be heavier on your wallet in terms of the premium you pay per term. Sports cars also have a higher premium as they are put under the high risk category due to their powerful engines. The drivers are assumed to be fast and/or rash drivers in this case. a good way to avoid falling under this category is buying a little known sports car which is not so popular. Or you can also say that you drive the car only on weekends for pleasure and it is not a daily commuter.
Always remember that shopping around for insurance is the best way to get the best deal. If you just apply to any big name without looking at the deal, you will end up losing a lot of money. Always use tools like the internet to ease your search.
If you are going to pay the premium for your teenager, then it is better you add him or her to your policy. Since he or she is under your umbrella, the premium will be much lesser than what you might have to pay if you took a separate insurance policy in their names. A teenager is always considered a high risk candidate. Try showing that he is responsible by displaying good grades or showing that he has enrolled for a defensive driving course. This will not only make him or her a better driver, it will help convince the insurance company that they are serious about safe driving.
The cost is also affected largely by your driving track record. If you have multiple tickets and misdemeanors against your record, you are obviously going to end up paying a lot more than a normal driver. It is the worst thing that could happen to you if you are branded a reckless driver. In order to get over this, it will take a number of years and a lot of safe driving. Hence you now have yet another reason to drive slowly and responsibly.
And lastly, choosing a low deductible is a sure fire way of increasing your auto insurance rates. The higher your deductibles, the lesser you will pay in premium every term. But do be aware that a high deductible means that you are going to have to pay that portion of the accident coverage by yourself in the event of an accident.