The Good Driver’s Guide to Auto Insurance

The average expenditure on auto insurance has been rising for almost a decade now. On average, the liability premium grew by 30% from 2014 to 2018. The incurred losses due to car accidents were over $96.8 billion in 2017. The number would be even higher now, considering the inflation and the number of accidents.

The larger chunks of these costs are paid by insurance companies and a small portion is paid by insurance takers and other bodies. To avoid paying these large sums now and again, insurance companies have rigid models regarding insurance premiums and whom to offer what. 

To that end, there are different ways in which insurance premiums can be reduced or kept in check. So, if you have been wondering how to lower your insurance premium, keep on reading.

How To Lower Your Insurance Premium?

A lower insurance premium is a liberty of sorts. It is offered to people who are safe drivers and have proved the same over a period of time. Here are some of our tips on how to lower auto insurance premium rates.

1. Safety Record

The best and foremost way of keeping your insurance premium the bare minimum is by having a clean and safe driving record. People with a record of rash driving, multiple tickets, or a history of accidents are often the ones to pay higher premiums. Insurance companies are looking for safe drivers with clean records to start with. So, an exemplary status is all you need.

2. Credit Score

Your credit score is also essential when it comes to saving up on premium costs. Insurance companies use all permutations and combinations to understand someone’s profile, ability to pay premiums, and service policies. Credit scores come in handy when taking auto insurance. To take advantage of it and save on premiums, pay your bills on time, and have a decent credit score to keep high rates at bay.

3. General History

General history includes the profile (demographics), medical history, and other basic factors of the insured in question. This kind of information helps the insurance companies decide on the premium value. The occupation and usage of a vehicle are also taken into account to quote the right premium of auto insurance.

4. Principal Operator

A principal operator is someone who uses the vehicle the most for which the insurance is being taken. That person’s history is checked, and their safe drivers’ profile is scrutinized. Based on the findings, the premiums are decided. In such cases, families can opt for clubbing various options to get better coverage or deals, if available.

5. Location

The location has a significant role in deciding your insurance premiums. Some US cities such as New York, Louisiana, and Michigan have soaring premium rates. On the other hand, locations such as Indiana and Vermont have a lower premium rate. This is decided by complex calculations driven by incidents of accidents on the road and driving patterns in these areas. Thus, based on the location, the premiums are going to be determined for auto insurance in discussion.

It is an excellent practice to get information on available coverages such as liability, PIP, uninsured/underinsured motorist, property/physical damage, etc. All these are vital for any policyholder and can greatly determine the premium value of auto insurance.

Tips for Saving on Insurance

1. Driving Safely

Drivers with spotless driving records save on insurance premiums automatically. Insurance companies offer lower premiums to safe drivers because it’s a value-added proposition for them. Thus, the best tip is to keep your background clean as it is assessed during the calculation of premiums.

2. Using Right Technology

Technology can be a great measure to befriend insurance companies. With the right set of tech-savvy tools to record your driving behaviors, the premiums can go down. These recordings can be used at the time of accidental claims and can help show the decisions you made in difficult situations on the road.

3. Defensive Driving Course

A defensive driving course is also sometimes a way to lower your auto premiums. These courses are designed to cover vital driving concepts and include the refreshment of traffic rules of the specific area. If someone clears it, they can use these certificates to earn the insurance companies’ confidence and get lower premium rates.

In a Nutshell

Auto insurance policies often require customization because of various factors incorporated, and such policies are drafted after closely evaluating different driving facets. Generally, clubbing a lot of features can help with getting better coverage. 

Considering a customized auto insurance policy? Contact us for a free quote today!