The economic crunch is making more Americans worried about their financial health and day-to-day expenses. Across the nation, families are figuring out ways to scale back on unnecessary expenses and maximize savings. Unfortunately, some drivers are choosing to drop their insurance policies to save money.
Experts warn that there is a growing trend of more uninsured drivers on the nation’s roads and highways. Some states have reported that one out of every five drivers is uninsured. Getting involved in a serious accident with uninsured drivers can lead to thousands of dollars more in out-of-pocket expenses for insured motorists.
Saving money does not necessarily mean cutting back on essential expenses like insurance, analysts say. To prove their point, several suggestions are being offered to many drivers and policyholders who are considering dropping their coverage.
According to driving experts, when a potential policyholder applies for insurance, companies look for driving violations that may indicate risky behavior. A safe driving history is characterized by very few or no accidents or traffic violations. Providers often study driving records to assess whether a motorist is a high-risk driver or not. Drivers considered irresponsible or have a high possibility of getting involved in accidents are often slapped with higher premiums. Safe drivers, on the other hand, are usually rewarded with lower premiums.
The vehicle that a policyholder uses can also be a major factor in insurance costs. Industry specialists say that insurers prefer vehicles that have high safety ratings and feature safety devices and equipment. Side airbags, anti-lock braking systems, four wheel drive, and automatic seatbelts can be plus points for big discounts. Providers also consider some car models as prone to theft. The presence of a anti-theft system or engine immobilizer can earn drivers brownie points.
Drivers who have stayed with the same company for several years in a row can also ask their providers for loyalty discounts. Switching to a new provider can also lead to lower premiums. Some companies give out discounts to new customers and clients.
Americans who live in urban centers can also expect to have higher premiums than those who live in the countryside. A higher incidence of car theft and accidents in a particular area might persuade providers to set higher premiums for policyholders who live there.
Driving economy cars or alternative-fuel vehicles might just get motorists great discounts and premiums. Some insurers award policyholders who own hybrid vehicles and gas-sipping cars with lower than usual rates and premiums, expert say.