The process by which our car insurance rates at are determined appears to be arcane, arbitrary, and supremely frustrating. Although we know that our personal payments can go up from accidents or other problems entering our driving record, we have no clear idea what the base rate of insurance payment is or even should be. Take a look at these general guidelines and suggestions and maybe you will be able to bring your premium down a bit.
Credit Score
The best place to begin is to repair your credit score. American businesses view the credit score as the first and foremost barometer of the economic responsibility of the citizen, and a better credit score is generally associated with propriety and responsible action in other aspects of life. The California legislature has forbidden insurers to take the credit score into account when determining the automobile insurance premium, but for every other state in the union, it may be the single biggest deciding factor on payments.
Education
If you have attained higher levels of education, then you may see a small reduction in your monthly payment. Although there is not a large reduction, there is a gradual perceptible decrease of the premium as the policy holder’s education level progresses from high school through college and even to the graduate level.
Location
There are enormous differences in the insurance premiums between one state and the next. For example, Louisianans pay some of the highest auto insurance rates in America while North Carolinians pay some of the lowest. Moving from one state to another could make a difference of over a thousand dollars a year in payments. Though moving just for lower insurance premiums probably isn’t a good financial move, if you’re moving anyway, consider a state you could save some money.
Gender
According to insurance company statistics, women are generally better drivers. This means lower premiums in general. An average woman will pay about $15,000 less for auto insurance over their lifetime than a man would. Sorry guys, but men do tend to be more aggressive drivers in general, and thus tend to make insurance claims more often. This leads to approximately 12% higher premiums for male drivers than for female drivers.
Age
As with gender, there is not much you can do about your age. However, if you are married or in a family situation, then it may be wise to consider which member of the family would be the one best to carry the insurance.
Automobile insurance is one of the many areas of American life where information is power. Even if you have been in an accident, planning, forethought, and attention to detail can save hundreds or even thousands of dollars. Car accident lawyers in Boise, ID, recommend taking a copy of the police report, photographs, all involved parties’ information, and the contact information of any witnesses to your lawyer if you’ve been in an accident. This will give you a legal advantage when insurance companies start calling and accusations start flying. There is no reason to pay too much for insurance when there are options.