How To Maintain or Get Low Cost Auto Insurance Rates
You and your insurance agent wants you to have low cost auto insurance rates. Understanding what matters most to auto insurance company’s might be the best place to start. Following are some things to consider:
Statistical Safety Record
Without a doubt, the most important item is safety, but that includes criteria that may not be obvious. For example, new drivers tend to have safe records because they haven’t established a history. Therefore, they are unproven. Take action to save money by taking a driver’s education course to show you’re concern about safety. Experienced drivers should focus on remaining accident-free by following current traffic laws.
Demographics Picture Credit
Gender, age and even zip code have a major impact on auto insurance rates. Some can be dealt with, while others are what they are. For example, younger male drivers statistically have more accidents, so they tend to pay more. Likewise, if you live or work in an accident-prone zip code, expect to pay higher rates. Having an approved security system and parking in garage help in the underwriting decisions.
Perhaps one of the most often forgotten item affecting auto insurance rates is the number of miles driven each year. While you may not be able to cut the total number of miles driven to and from work or school, it is still possible to cut the total cost of coverage. Consider carpooling once or twice a week, taking public transportation or squeezing in a little exercise for quick commutes. Over time, it all adds up to fewer miles and less costly auto coverage. More auto insurance companies are asking you to offer odometer readings upon renewal. Auto insurance carriers will ask where the vehicle is garaged, where you live and your work address so they can estimate the miles driven annually. Typically, the calculation + 5,000 miles is typical estimate. Should you change work place or stop working for a significant period let your broker or insurance company know as the savings may be significant.
Last but not least, other drivers that have access to your automobile are likely to impact rates. In some cases, it is actually more cost-effective to buy a second vehicle and help pay for an individual insurance policy than include a secondary driver, especially if liability is a major concern.