Reader question:
What kind of factors affect my car insurance rates?
Susanna
That’s a great question, Susanna.
The truth is that, unlike the old day when just a couple of factors affected your rights, nowadays car insurance companies use a tiered rating system that has so many levels that you will get not only the most personalized premium rate quote, but the most confusing one as well. There are several salient ways, though, that you and your own behavior affect your auto insurance rates. How do you cut down on these rates using these factors?
- Drive safe. As always, a good driving record is key to getting cheaper car insurance rates. Things like traffic tickets for speeding can make your rates go up significantly, so you definitely want to avoid getting into any trouble on the road.
- Don’t drive so much. The more miles you go per year, the more you’re going to get charged on your car insurance premium, and that’s a fact. You might not be able to drive little enough to qualify for a low mileage discount, but all the same less driving works out to a lower premium.
- Drive the right kind of car. A car that doesn’t show up much on the accident and theft radar is the kind of car that auto insurance companies like to insure. To find out if the car you’re interested in is one of these, you can find out by talking to the Insurance Institute for Highway Safety.
- Get a bigger deductible. Pay less now, pay more later. If you have a good driving record, it may be worth the risk, since you’re not as likely to get into an at fault accident.
- Get rid of coverage you don’t need. If you’re driving a clunker, you don’t need comprehensive coverage. Instead of piling up on insurance coverage, get what’s best for your car.
Cheers,
Fashun Guadarrama.