Car insurance is like many things in life. You will have a policy that will change over time. Usually it will change every six months or twelve months depending on the type of plan you have signed up. There are many tips you can follow to keep your car insurance premiums lowered. This article is going to discuss some of those tips and why they work.
- Tip #1: Know what your credit score is. Your credit score has an impact on your premiums. If you are heading into financial trouble or have had financial trouble in the past you can expect to have higher premiums. The car insurance companies check your credit history and assess the risk you pose. If you are heading towards financial troubles you may elect to change a few things in your life to avoid the increase in your car insurance.
- Tip#2: Keep a clean driving recorded. Many people suffer from higher premiums because they tend to speed, without worrying about the tickets. There are of course many ways to get a violation including impeding traffic, not keeping up with your car registration, not changing your driver's license over or tags. The idea is that you keep yourself as clean as possible and obey the laws. Those who don't have tickets on their records will be able to have lower premiums even at a young or older age. The risk is lower; therefore the premiums are going to be lower.
- Tip #3: For students in high school or college you can actually ask about student rates. Many car insurance companies offer lower rates to students who have higher grades as they are seen as responsible. Car companies know it is hard for students to pay for college or even to have a car in high school and therefore they have benefits.
- Tip# 4: The vehicle you choose will decide the premiums you may have to pay. Sports cars are one of the most expensive to insure. You will find even a VW Beetle is considered a more risky vehicle than something like a Jeep Wrangler. Even getting a newer car can be more expensive for insurance than an older vehicle. Car insurance companies look at the safety, responsibility of the driver, and the vehicle itself to determine how much risk in a claim there may be.
- Tip #5: You also need to keep the claims to a minimum. For instance it is important to know how much damage a car will need to have before the company will pay out. For instance most cars start out with a deductible of $500 for damage. This means if your windshield cracks you usually can't file a claim because the amount is around $250 or less depending on the vehicle to replace the windshield. Trying to file a claim could even raise your rates.
There are many things a person can do to lower their car insurance premiums and though only a few are mentioned they are still some of the most important.
