How to Lower Your Car Insurance Premiums

Car Insurance Premium

Car insurance is a necessity; however, understanding it may prove to be quite challenging. Understanding the differences between comp and collision, liability, uninsured motorist coverage, and the various other types of policy considerations may leave you spinning.

In this brief guide, we will outline certain facts pertaining to car insurance coverage. By learning these facts, you will have the capability of successfully lowering your car insurance premiums.

Car or Driver?

In most instances, car insurance is directly associated with the car. This means that if the vehicle is in an accident, the car insurance may cover what is outlined in the policy if you are not the driver; however, this is not always the case.

You must carefully read your policy to determine if coverage is available for all use of your vehicle. Depending on the state you are in, you may be required to place all licensed drivers that reside in your home on the policy.

Be certain to ask if the insurance is tied to the vehicle or the driver upon setting up your policy – just for clarification.

Credit Score and Cost of Your Car Insurance

In most all states, your credit score will have a direct impact on the amount that you pay for your car insurance. There are certain states that will not factor in your credit score in their pricing model.

The reason many consider the credit score is because – statistically – if an individual has a low credit score, they are more likely to cost the car insurance more money, in the long run.

Poor credit scores equate to higher risk. They will often increase their rates in order to cover future expenses that may be incurred. If you want to lower your car insurance premiums, work on that credit score!

Premiums and Age

Many insurance companies do not divulge this fact, but younger drivers will typically pay more for their car insurance. Highest rates are associated with individuals around the age of 18.

This declines steadily until the age of 25. Low rates may then be achieved. However, once an individual reaches the age of 55, the rates will start to increase, once more. By the age of 75, insurance rates are typically at their highest.

Type of Vehicle

The type of vehicle that you drive, its value, and the associated safety rating all have a direct impact on the price you will pay for your car insurance.

Additionally, where you live, where you park the vehicle, how many miles you typically drive in a year, and the expense associated with additional features may all increase the amount you pay for your premiums.

Driving Record

If you make a claim, it is entered into a database used by insurance companies. Additionally, any traffic violations will be noted.

Both the driving record and your previous claims will work against you when purchasing vehicle insurance. The secret is to avoid claims and to be a safe driver if you are looking to lower your car insurance premiums.

The Best Rates

We here at Modica Associates are capable of getting you the absolute best rates on your car insurance. In addition to offering personal auto insurance, we also offer home insurance, business insurance, and more!

If you would like to learn more about getting the best rates on your car insurance, call us today and speak to one of our insurance agents: 718-855-1836

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