Auto Insurance: Reducing Your Costs

Auto insurance can be expensive. Although a variety of factors determine how much a typical driver pays, you may still be able to reduce your costs. Discover what may be contributing to your auto insurance bill and how you could effectively save going forward.

Factors that Affect Costs:

There are a number of different factors that influence how much you pay for car insurance. Depending on these factors, your rates may fluctuate. Though age and experience are proven to significantly impact how car insurance providers determine your rates, there are multiple other factors that contribute to your insurance costs. These broad-based underwriting criteria include:

• Age and gender

• Marital status

• Years of driving experience

• Coverages and deductibles

• Type of vehicle

• Location of vehicle (state)

• Whether the vehicle is used for work or personal transportation

• Driving record

• Claims history

• Credit history

• Previous history of insurance coverage

Ways to Save:

Despite the numerous insurance cost contributions, it’s possible to save money on your car insurance simply by being proactive. You should constantly check for discounts, compare different rates online, and look to take advantage of other excellent opportunities that may be available. You could get savings by doing any of the following:

• Insure more than one car

• Maintain a good credit rating

• Get good grades (if you’re a student)

• Take advantage of low-mileage discounts

• Increase your deductible

• Drop collision coverage on older cars worth less than 10 times the premium

• Install anti-theft devices

• Take defensive driving courses

• Remain a long-term customer

• Have no moving violations or accidents in three years

Insurance costs can fluctuate for many reasons. When you take charge of your coverage, you can identify what things may help you save. It’s important to shop for insurance, research any available discounts, and let your agent know that you may qualify for lower costs. Keep these tips in mind when it’s time to renegotiate your premiums or shop for new auto coverage.