Who doesn’t want to save on costs when buying an insurance policy? Everyone would love to have a few hundred dollars off their insurance premium, not only based on the type of car you’re driving and its model year but also about the kind of policy they bought from a particular insurance company.
To do that, you must be aware of the different factors that affect insurance rates. What could be causing these insurance rates from going up? The average annual cost of insurance is a little less than a thousand dollars. The exact amount that the consumer has to pay for his insurance depends on these factors:
• Driving record – how many time have you received a ticket for over speeding, beating the red light and even wrongful parking? Such simple driving violations could cause your insurance rates to skyrocket. Should you pay for higher insurance premiums than those with a good driving history? Insurance companies think you should because those tickets make you a high-risk driver.
• Car Use Frequency – how often do you go out there driving your car? The more often you get out there, the higher the risk of you getting involved in an accident. This greater chance for accidents is translated by most insurance companies as higher premiums. However, the less you use your car, the lesser the risks.
• Car park – where do you park your car? Did you know that a secure garage for your vehicle helps lessen he insurance premium that you have to pay? Insurance companies view proper car parking as a way of securing the investment you made in buying your car as well as the insurance that comes with it; in turn, they consider you at less risk of becoming a victim to minor accidents that could still damage the car or even theft.
• Driver’s age – how long have you been driving? The driver’s experience helps insurance companies determine whether or not he knows how to become a defensive driver while on the road. New drivers usually have to pay higher insurance premiums. Those that come with experiencing a long list of traffic violations still end up paying more than they actually should if the only experience were the factor evaluated.
But how do you find the perfect balance between the amount you are willing to pay and the amount of coverage that you’d like to get? How do you reconcile the two when these two are practically at par with each other – if you want higher insurance coverage, then you must be willing to pay the higher insurance premium. But does it have to be? Not when you have the right insurance company to talk to.
Image Source: http://www.freeimages.com/