Beating the System: 6 Keys to Reduce Your Car Insurance Rate

One of the most perilous things that we can do is a drive a car. It can become a very severe or expensive situation if one driver makes a mistake. This potential high cost is transferred to car insurance premiums. There are many factors involved when it comes to determining car insurance rates. Insurance customers have no control over that part of it. There are some things that you do have control over. There are ways that you can reduce your car insurance rates.

Switch Vehicles

Every vehicle is assessed a different risk variable. This depends on a number of factors. This includes cost of replacement parts, crash test rating, classification, price, how often the model is stolen, and horsepower-to-weight ratio. You should avoid newer vehicles, expensive vehicles, sports cars, and those that are not considered top class when it comes to safety. These are generally smaller vehicles. Insurance make and model comparisons are reported every year. Every insurance company will share similar information if you ask for it.

Pay Up Front

If you pay for the year ahead all at once instead of paying a monthly payment, some insurers will offer a discount. You should pay up front if you have the cash on hand. If you switch insurers, you don’t have to worry about losing your cash. Your insurance company is required to pro-rate you the total bill. They will refund you for the days that you will not be covered under them.

Drive Safely

Your driving record is still considered to be one of the top factors that insurance companies look at. An accident or a traffic violation within the last few years can have a major impact on your premium. Some insurance companies look back about three years. Others look back further than that. You can also reduce your premium the longer you drive without any accidents or citations. There are also driving training courses that you can take as well. This can help reduce your car insurance. Some car companies have begun installing functions into their vehicles which automatically track avg mileage, driving patterns, speed patterns, and braking patterns among others. These features which are directly reported to insurance companies help them evaluate your risk to them. It is a potential savings option if you are confident in your driving.

Reduce Miles

If you drive less miles, a number of auto insurance companies will offer you a lower premium. You may want to consider moving closer to your job. This can save money on fuel and commute time. It will also reduce your car insurances rates. You can reduce your miles by doing this. There are pay-by-the-mile programs that are offered by insurance companies as well. This can cost you less if you rarely drive.

Improve Credit Score

Credit history is being looked at lot more by insurance companies. It is a much highly valued variable that helps insurance companies evaluate your financial standing. Financial standing holds a strong correlation to potential insurance loss. It is important to remember that the less you come across as a liability to insurance companies the cheaper your rates will be.

Purchase Vehicle With Theft Device

You can buy a vehicle with a theft device or you can have one installed. This is important to insurance companies because the liability factor of them having to cash your insurance decreases substantially.

There are plenty of ways to reduce your car insurance rates. Some of these options may vary in different states. You can also look into deductibles, safer car benefits, and sponsored programs to try to get a discount on your car insurance as well.

Informational credit to Drayden Insurance Ltd., an Edmonton car insurance company (free quotes).