All Auto insurance premiums and costs are based on statistics. These statistics involve analyzing accident rates and theft rates for the different makes and models of automobiles, under differing circumstances. It is for this reason that auto insurance is significantly more expensive for teenagers than it is for adults. But there are many factors that determine the cost of your auto insurance premium.
Lets take a look at the main contributing factors.
A. Deductible. Having a low or zero deductible on your auto insurance will significantly increase the cost of the policy. This is of course a tradeoff, because you are gambling on the fact that you won't need to make a claim. You can pay up to 10% less on your annual premiums buy increasing the deductible. But a word of warning, if the time arrives to make a claim then you will be digging deeper into your pockets to pay for the larger deductible.
B. Crime Rate . If you are living in an area that statistically has high theft rates for your make and model of vehicle, then you will pay a higher premium. This is because your car has a much higher liklihood of being stolen, vandalized, or involved in an accident. There is not much you can do about this, you shouldn't move location just to cut your auto insurance costs. Don't make the mistake of asking one of your family who live in the rural if you can use their address for your auto insurance. If the insurance company discovers this, you may be in trouble when its time to make a claim.
C. Garage Parking. The majority of auto insurance companies will give you to a slight premium reduction because cars parked in a garage are less likely to be stolen, vandalized, or damaged.
D. Mileage. Some companies have a low milage discount if you drive less than a certain number of miles in a year. This is often difficult to become eligible for because you will need to limit your driving in order to qualify.
E. Anti-theft Alarms Most auto insurance companies offer policy discounts if your car is equipped with a safety device or antitheft device
F. Shop around to find the cheapest auto insurance available. Get a quote from every reputable auto insurance company in your town or city. Most reputable insurance companies are on the internet and its easy to get online quotes.
F. Insurance Consolidation. Most insurance companies will give you significant discounts if you have all your insurance policies with the same company.
G. Driving Courses. Most companies are now reducing the policy for people who take a driver education course. This mainly applies to new drivers. Insurance companies like to know that you are driver educated and therefore statistically have less liklihood of an accident.
H. Being Smart Helps. Many car insurance companies are now offering discounts for higher than average grade students.
7. No Claim Bonus. Most insurance companies will reduce the premium every year if you don't make a claim. Every year your premium will reduce if you do not have an accident.
8. Sports Cars Pay The Price. If you have a high performace sports car then you better dig deep. Sports cars and up market luxurious cars are the most expense to insure. Many times the cost can be double or more than a standard family car.
So finally, to save on your auto insurance premium costs its a matter of keeping the above factors at a level that are in your favor.
