Consumers Told: Research Key to Lower Premiums


Despite the bleak outlook on the economy, experts say that consumers can still get lower insurance costs by simply doing their homework before deciding on a provider.

Consumers Told: Research Key to Lower PremiumsRecent data suggests that more and more Americans are choosing to increase their deductibles in hopes of reducing their insurance expenses. Some motorists even drive without renewing their policies, something prohibited in almost all states.

Specialists say that drivers should be aware of the important factors companies look into before coming up with insurance quotes. They also contend that the few hundred dollars many motorists skimp on to avoid buying insurance can lead result to thousands of dollars in unexpected expenses when unforeseen accidents occur.

Uninsured drivers can stand to pay enormous fines if they are caught without insurance cards or papers. Even minor fender benders can result in costly settlements and auto repair bills. Worse, drivers without insurance coverage can be held liable in case of injuries or deaths in a car crash, experts explain.

Analysts suggest that motorists examine their lifestyles and determine behaviors or factors that can increase insurance costs. Heavy drinking and a lifestyle which involves a lot of driving can help drive up insurance costs. Companies often consider drivers with drinking problems as high-risk policyholders and tend to place higher premiums on their policies. Businessmen who drive often can also expect more expensive insurance.

Experts also add that consumers should take note of the providers’ vehicle preferences. Most insurers give lower premiums to motorists who drive newer and relatively safer cars. Vehicles with anti-theft devices and other safety features are also certain to lower insurance costs for policyholders. Providers look at safe cars as their own insurance against the possibility of their policyholders getting involved in an accident or getting injured, specialists say.

Motorists should also consider comparing companies and insurance quotes online to have all the important information on hand before making any decisions, analysts say. They add that asking about the policy coverage can help drivers make up their minds or give them a better chance at finding a suitable insurance coverage.

Experts explain that consumers should be aware of how the auto insurance industry works to make the most out of insurance costs. They add that doing a bit of research about local insurance regulations and laws can definitely give motorists more opportunity to get better insurance premiums from providers.