Premium for car insurance is one of the major expenditure that you incur every month without fail. Sometimes when the financial situation is precarious it becomes difficult to pay the heavy premium for your auto insurance. There are some factors that affects your monthly premium amounts and these are completely under your control. By making necessary changes, you can control the amount of premium you pay every month..
Type of vehicle:
Your insurance premium is fixed based on the model of the car you own. Do your research regarding the history of the model of the car and buy the one that has least number of recorded accidents or thefts. You will pay much lesser premium amount for the ones with least number of accident or theft histories. Go for an economic and functional car rather than sporty one. Insurance companies charge more premiums on costly sports cars and fancy models rather than the old and basic model cars. Try and find out which one will have more premium attached to it before making the purchase.
Driving record:
Having a clean driving record makes a big difference to your premium amount. Take all traffic rules seriously and stick to them. The more number of traffic tickets you get, the more amount of premium you pay. Also, if your car is involved in an accident in the past, then your premium amount is bound to increase.
Insurance companies:
There are numerous insurance companies offering various policies for auto insurance. The premium amount they offer for every auto insurance plan is very different. Take your time to ask questions and find out about every offer you can get in the market before fixing upon one. Choose the coverage that is necessary for your car and see to it that you opt for the insurance company that offers the lowest premium rate for your desired coverage.
Discounts and special offers:
Most insurance companies offer special corporate discounts if you enroll through your company. Inquire about those discounts before signing for a policy. Special discounts and low premium rates are offered for new customers or on special occasions. Make use of any such deal available. Some insurance companies offer a special discount of up to 20%, if you complete a course of defensive driving lesson. Before signing for a policy, inquire if such provision is available in your insurance company. It is much affordable to take the driving lesson if you can avail a discount of 10 to 20%.
Reduced mileage:
One way to reduce your premium amount is to reduce your car usage. The less mileage your car covers, lesser premium amount you pay. Use public transport system or take advantage of car pooling or sharing a ride. Try to minimize the number of miles your car runs. Insurance companies associate the mileage that a car covers, directly to the risk of the car involving in accidents. Therefore, they charge a high premium rate if your car runs for long miles.
Deductibles:
When you opt for a low deductible amount for insurance claims, the insurance companies can charge you a higher rate of premium. Low deductible means that you will have to pay lesser amount from your pocket at the time of insurance claim. So, naturally greater the deductible amount, lesser premium you end up paying.
