Auto insurance is all based on statistics and the chances of
accidents happening. Therefore, reduce the chances of accidents
will ultimately reduce the amount of the insurance policy.
That's why auto insurance is more expensive for teenagers than
adults. Here are 5 factors that the insurance companies look at
to determine how much your insurance will be.
1. Deductible. Raising the deductible on their
auto insurance is a good way to cut the cost of the policy.
Sometimes you can reduce your annual premium by 10 percent or
more if you increase your deductible from, say, $250 to $500.
However, If you do this make sure you have the financial
resources to handle the larger deductible when the time comes.
2. Location. Living in a rural community with little
crime and traffic congestion, your premium will generally be
lower than living in an urban area where your car is more likely
to be stolen, vandalized, or involved in an accident. Granted,
you shouldn't move just to cut your auto insurance costs.
However, this may be one of many factors in your decision if
you're thinking about relocating from the country to the city.
What you should do ask one of your friend who lives in the rural
if you can use his address for the auto insurance and is tell
the insurance companies the rural location where your friend
lives.
3. Garage parking. Cars parked in garages are less likely
to be stolen, vandalized, or struck by other vehicles. Using a
garage to store your car may entitle you to a slight premium
reduction.
4. Mileage. If you drive less than a certain number of
miles in a year (e.g., 7,500), you may qualify for a low-mileage
discount. If your insurer offers this discount, try to limit
your driving as much as possible. If you commute to work, use
public transportation instead of driving. When you go away on
vacation, fly or take the train.
5. Safety/Anti-theft Devices. Majority of the
insurance companies offer discount if your car is equipped
with one or more of the following safety devices: anti-lock
brakes, automatic seat belts, and airbags. Similarly, anti-theft
devices such as car alarms and tracking systems (e.g., Lojack)
may also get you a discount because they reduce the chances of
your car being stolen or vandalized.
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