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5 Facts That Will Reduce Your Auto Insurance
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By: Danny Huang
Auto insurance is all based on statistics and the chances of accidents
happening. Therefore, reduce the chances of accidents will ultimately reduce the
amount of the insurance policy. That’s why auto insurance is more expensive for
teenagers than adults. Here are 5 factors that the insurance companies look at
to determine how much your insurance will be.
1. Deductible. Raising the deductible on their auto insurance is a good way to
cut the cost of the policy. Sometimes you can reduce your annual premium by 10
percent or more if you increase your deductible from, say, $250 to $500.
However, If you do this make sure you have the financial resources to handle the
larger deductible when the time comes.
2. Location. Living in a rural community with little crime and traffic
congestion, your premium will generally be lower than living in an urban area
where your car is more likely to be stolen, vandalized, or involved in an
accident. Granted, you shouldn't move just to cut your auto insurance costs.
However, this may be one of many factors in your decision if you're thinking
about relocating from the country to the city. What you should do ask one of
your friend who lives in the rural if you can use his address for the auto
insurance and is tell the insurance companies the rural location where your
friend lives.
3. Garage parking. Cars parked in garages are less likely to be stolen,
vandalized, or struck by other vehicles. Using a garage to store your car may
entitle you to a slight premium reduction.
4. Mileage. If you drive less than a certain number of miles in a year (e.g.,
7,500), you may qualify for a low-mileage discount. If your insurer offers this
discount, try to limit your driving as much as possible. If you commute to work,
use public transportation instead of driving. When you go away on vacation, fly
or take the train.
5. Safety/Anti-theft Devices. Majority of the companies offer discount if your
car is equipped with one or more of the following safety devices: anti-lock
brakes, automatic seat belts, and airbags. Similarly, anti-theft devices such as
car alarms and tracking systems (e.g., Lojack) may also get you a discount
because they reduce the chances of your car being stolen or vandalized.
About the Author:
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