Saving Money on Car Insurance

The car insurance industry is cyclical. For long periods car insurance rates will hold steady when insurance companies are making money. When insurance companies lose money, however, we experience an repeated auto insurance rate increases. Then you have to ask yourself, “why are my car insurance rates rising? I haven’t had a claim.” There are things that we can do, however, to control our rate of increase.

Can you impact car insurance rates? What factors should be considered?

Let’s look first at driving record. Of course it is always best to have a good driving record. The number one reason for an insurance company to raise your auto insurance rates is your driving record. When you have tickets, attending a state sanctioned driving class can help result in the reduction of points on your motor vehicle report. Most states (e.g. Ohio, Illinois and Florida) offer these types of courses. Of course slowing down is the long-term answer to keeping you auto insurance premiums down. Check with your state’s motor vehicle department.

The type of car you are buying or already own is another factor to keep in mind. In determining the insurance rates, the insurance company considers past lost history associates with that type of car. This is usually correlates closely with the style (e.g. sports car v. sedan), speed of the car, cost of the car, and safety features.

Sports cars will have higher insurance rates because the frequency of having an accident is greater than it would be for that really attractive minivan. Car insurance companies will also offer discounts for safety related features like airbags, cars alarms, car tracking systems anti-lock brakes and the like. Having this type of feature will most certainly save money on your auto insurance, but many of these features may also save your life. So, look for these features in the process of buying a new or used car.

Your credit score is a huge factor in determining your auto insurance quote. Insurance companies have correlated low credit scores with a higher probability of an accident. The data shows people who are financially responsible drive better as well. So, spending within your limits and paying your bills on time will save money on your auto insurance.

Another very important consideration in determining your premium is to never allow a lapse in your auto insurance coverage. Driving without insurance is against the law and an extraordinarily expensive proposition. First, you will get a gigantic ticket. Next, having no car insurance leaves your personal assets completely at risk if you cause damage in an accident. To top it all off, car insurance companies have higher losses with customer who do not having prior insurance. So, you can expect significantly higher rates on your next car insurance quote. It is simply not worth going without auto insurance.

Before you purchase a car, talk to your Cheap-Auto-Insurance.com car insurance agent about the vehicles you are considering, or get an online insurance quote through Cheap-Auto-Insurance. Call us to see if we can save you money on your auto insurance.

Disclaimer: The contents of this and all articles provided by Insuredirect.com are for informational use only, as the specifics of any situation will vary with the circumstances. Do not consider the information provided in this article as a recommendation on purchasing any specific auto insurance, homeowners insurance or other type of insurance product, or to provide financial or legal advice. Without exception, all information is presented for information purposes only.

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Rev. V.1 - 10-27-2007