subject: The Many Factors That Go Into Your Car Insurance [print this page] Many people are naturally puzzled by the world of car insurance. It doesn't seem like any other product you see on the general marketplace. For example, it's not difficult to see what goes into the price of apples. If there is a good season, and there are plenty of apples, they'll be cheap. But if their is some kind of drought or apple plague, then they will be more expensive. But buying insurance is like turning on some random number generator and seeing what comes out. When you compare insurance rate with your friends, you'll find you are paying all kinds of different rates. In this article, we'll go into what goes into your premium, so you can have a better idea. That way, you can take some steps to reduce your rates, and save some money.
First of all, your driving record is the most important. If you have a clean driving record that is free from accidents and tickets, you are going to have a pretty low rate. On the other hand, if you've got a moving violation record as long as your shoe, then you are going to be paying quite a bit. So obviously, driving safely is the best option. If you do have some tickets or accidents, enrolling in a safe driving program can help. Once you pass, and get some kind of a certificate, you may be able to get some lower rates. If you are a good driver, then check and see if you can get a good driver's discount.
Another thing that goes into your rates is how many miles you drive every year. The more miles you drive, the higher the chances that you'll get into some kind of accident. If you want to decrease your premiums, then simply drive less. You can do this in plenty of different ways. You can take the bus to work sometimes, or car pool, or start riding your bike around. Just show your agent that the miles per month on your car is less, and you may get a cheaper rate.
The kind of car you drive is also a factor. If you have a fifty thousand dollar sports car that does zero to fifty in half a second, then this is going to be a huge risk to the insurance company. On the other hand, if you've got a 1984 Toyota that only goes fast when it's going downhill, then it won't cost very much to insure it. Consider changing automobiles if your premiums is a problem.
These are the three basic things that go into your insurance premium. By altering them to give you lower rates, you can save some money.
by: Winston Takeda
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