When you receive a quote for an auto insurance policy, the amount that you are quoted is not some random number picked out of thin air. Insurance companies rely upon all types of data and statistics to categorize you into a specific risk category. Those who fall into a low risk category receive lower rates than those who are categorized as high-risk drivers.
Some things you can not change, but, there are many things you can do to lower your auto insurance premium. You can not change your age or you can not change your gender. However, you can improve your driving habits, purchase a specific type of car, qualify for discounts and sometimes reduce the amount of coverage.
Your driving record plays perhaps the biggest factor in determining your auto insurance premium. If you are a safe driver meaning you rarely get into accidents or get tickets for traffic violations, you will tend to fall into the low-risk category. If you get a DUI and file multiple claims over a short period of time, your premium will likely go up.
If you want to pay less for auto insurance, don’t buy the fanciest sports car on the lot. Owning an expensive car that costs a lot to repair or is likely to be the target of a car thief, will lead to higher auto insurance rates. Instead, choose a modest vehicle, preferably one that is a few years old, and you might see lower premiums.
Auto insurance companies often offer discounts for drivers who carry more than one policy or fit into a certain group. You may get a safe driver discount, a loyalty discount, or any other number of different discounts that will lower your premium.
As a final option, you may want to reduce he amount of coverage you have on your car. If you are not required to carry collision on your car, you have the choice of dropping hat coverage. You can also raise your deductible to lower your premium. While this option is sometimes a smart way to save some money on your premium, it may not always be. Whenever you decrease your coverage, you assume more risk.