In this time and age, saving money is always a top priority of any American family. The tough economy and the uneasy job market are making life even more difficult for families across the U.S. Despite the improving unemployment figures, economists are cautioning against speculating at an early stage regarding economic recovery. The uncertainty is taking its toll on millions of Americans, with more motorists choosing to forego their auto insurance to save money.
Experts agree that getting rid of insurance coverage in order to save money is never a good decision. With more and more uninsured motorists on the road, there is a real risk that car owners with no insurance will have to go through more financial problems if they get involved in an accident.
Fortunately, there are some things that drivers can do to cut back on insurance expenses. Industry specialists and advisers have teamed up to help American motorists make the most of their hard earned money and learn how to save money on insurance.
First of all, experts advise driving less. The more miles a motorists drives, the higher the premium. Insurance providers look at how much policyholders drive each year. More time spent on the road can mean a higher probability of getting in an accident. According to insurance specialists, policyholders should plan out trips in advance to minimize driving. Before giving insurers rough estimates, car owners should keep track of how much they drive to provide the insurance companies with accurate numbers. Underestimating miles driven each year can affect the coverage offered by a particular policy.
Also, motorists have to be aware of the fact that more expensive cars can mean more costly insurance. High-end vehicles are considerably more expensive to insure because of several factors like the price of spare and replacement parts, and special repair personnel and services. Some cars are also favorites of car thieves. These circumstances can present a problem for insurers, hence the higher premiums.
How secure the cars are can affect insurance rates greatly. Leaving vehicles out on the streets or in poorly maintained garages can increase the risk of vandalism or damage significantly. To make up for these dangers, insurers often have to raise premiums. Installing anti-theft devices can also reduce rates considerably.
The policyholder’s occupation also plays a crucial role in determining premiums. Some professionals file for more insurance claims than others. Because of this, insurers would often tag professionals like real estate agents and journalists as high-risk clients.