If you feel like you are paying too much for car insurance, you are not alone. Many people feel this way after talking with friends and neighbors, but they rarely feel that there is anything they can do about it. Most people also know that auto insurance companies base their fees on certain things, like make and model of their car, driving record, and safety features. However, there are many more factors that are also used to determine insurance premiums. Outlined below are some features that you may not be aware of. Learn about them and take them into consideration when you want to find ways to save money and get cheap car insurance.
High Performance Specialty Vehicles
Hyundai Veloster (base, manual), Dodge Dart Aero (1.4T), and the Volkswagen Passat SEL Premium (V6) are the top 3 vehicles in their categories to be the most expensive cars to own. The more your car costs, the more expensive it will be to fix. This will make your auto insurance higher as well. Consumer Reports has information on the most and least costly vehicles to drive, so if you are in the market for a new car, check the list first.
If you are on a tight budget, it is extremely stressful to think about paying $2,000 out of an already empty pocket for accident damage. It may be worth it to you to pay a little extra a month to have a lower deductible. If you have some emergency money set aside, then going for the higher deductible will save you a good amount.
Rent Or Own
Believe it or not, your car insurance will be higher if you rent, rather than own your home. Homeowners save as much as 6 percent on their car insurance, depending on the company. This is something you should ask your insurance agent up front, and may be enough of an issue to send you looking for a different company.
The more you are on the road each day, the higher you insurance rates. From the insurance companies point of view, the more time you spend driving the more likely you are to be involved in an accident. If you can shorten your time on the road by carpooling or using public transportation, it will end up saving you money.
Where You Live
Certain geographical areas have higher crime rates and higher accident rates. This makes you at a higher risk than someone who lives in a more rural area. Not that you should pick up and move, but you may be able to lower your risk and your premium if you keep your car locked in a garage at night, instead of parking on the street.
Most insurance companies do more than one thing, and the fact is, you probably need more than just auto insurance. If you can bundle your car insurance with home, life, or renters, you can save a significant amount. Some companies even have loyalty discounts up to 25 percent.
According to the Federal Trade Commission, studies have shown that people with lower credit scores are more likely to be involved in an auto accident. In addition, they also tend to have incidents that are much higher in cost compared to those who have a high credit score. Thankfully, there are a few things you can do to raise your credit score over time. Paying your bills on time and paying off credit cards will get your credit score up, and keep your insurance rates down.
Most people don’t like to hassle with their insurance. They just want to do what the law requires and leave it at that. Unfortunately, that way of thinking can really hurt if you or a family member ends up in an accident. It really pays to take the time to understand what your insurance policy covers, and what it does not. Then you can make adjustments that will keep you protected, and help you maintain your financial goals.