subject: Know More About Reducing Your Auto Insurance Premiums [print this page] Know More About Reducing Your Auto Insurance Premiums
Auto insurance companies provide the public with an avenue to protect their assets in case they get involved in a car accident. By availing of car accident insurance policies, you enter an agreement with the vehicle insurance company. In their part, they will take care of the expenses related to a car accident you were involved with (based on the terms of your policy) while you pay them insurance premiums.
However, auto insurance premiums differ for each individual. The insurance companies have to weigh if you are accident prone or not. The higher the risk you may be involved in a car accident, the higher the insurance premiums will be. Some of the factors considered by insurance companies when determining premiums are:
Coverage. The more coverage you include in your policy, the higher the premium
Age. Young (16-21) and elderly (70) drivers are considered as high risk drivers and are more prone to accidents.
Car model. The more expensive a car is, the harder it is to replace it in cases of theft or accidents.
Car manufacturer. The more common the manufacturer is, the lower the premium.
Location. Urban areas have higher premiums. More cars mean high risk of accidents.
Driver's Gender. Men are more prone to accidents than females. Therefore, higher premiums.
To lower your vehicle insurance premiums, you can follow the following tips:
Search the market. Look for companies that offer the best package and discounts. When choosing an auto insurance company, it is critical that you check their financial stability.
Get group insurance. Many companies offer discounts to premiums if you avail policies in group. The easiest route is through your employer.
Get a simple car. Low profile sedan fetches a lower premium compared to expensive sports car.
Take defensive driving lessons. Companies would see your intention to keep away from accidents.
Keep your credit report clean. A clean record means you always pay on time.
Safety features. Reducing the risk of injury also reduces your premiums (anti-lock brakes, dual side airbags and electronic seatbelts).
The best way to keep your auto insurance premiums, though, is to keep obeying traffic laws and be a responsible driver.
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