It is quite possible to keep the auto insurance rates low if one plans it carefully. There are several factors that contribute to the auto insurance rates and car owners should understand what to do and what not to do, to keep the insurance rates low. Here are some things that car owners should avoid to ensure that their premium remains low over long periods of time.
Excessive driving
Although, car owners would love to enjoy driving, it is advisable to avoid driving too much. This is because auto insurance rates tend to go up as the mileage on a car increases. More you drive your car greater are the chances of being involved in accidents. Therefore from the insurance providers’ perspective the car owners who drive less will get the benefit. So, try to go for car pooling or use public transportation if possible from time to time, to keep the mileage low and lower your auto insurance rates.
Traffic violations
It is imperative that you avoid traffic violations not just for personal safety but also to lower your auto insurance premium. Auto insurance providers offer special discounts for those who have an impeccable driving record over a period of 3 years or more. On the other hand, if you have traffic violations in your record, including offences like jumping signals or over speeding, you are considered reckless. That leads the auto insurance providers to increase the premium.
Bad credit history
In order to get attractive auto insurance rates, individuals should try and maintain a good credit history. If your credit history is good, you are considered to be a more responsible and safer bet by the auto insurance providers. As a result your premium goes down. It is therefore advisable to keep your payments consistent and debts low.
Too many claims
It is interesting to note that too many auto insurance claims will lower your creditability to a great extent. Therefore one should avoid making insurance claims if they are not substantial enough. Making insurance claims will make the insurance provider feel that you are reckless and are involved in accidents. It taints your driving record too. Hence avoiding it until absolutely necessary is advisable.
Expensive cars
It is a proven fact that SUVs and expensive cars attract greater auto insurance rates. This is because damage repairs cost more in case of expensive cars.
