Drivers shopping around for car insurance may be easily lured by the promise of big savings by switching to a specific carrier. After all, at an average of $866 per year for liability, collision, and comprehensive premiums in 2014, car insurance can take up a lot of space in the average budget. Unfortunately, sometimes those promises fall flat, with drivers finding out they have to slash coverage or raise their deductible to qualify for lower rates. There is so much more to the cost of car insurance than the policy and deductible you choose. Continue reading to learn the types of variables that affect your rates and what you can do to leverage them to your benefit.
Premium Calculations
Car insurance premiums can fluctuate significantly from person to person and carrier to carrier. Insurance companies gather consumer information about drivers to assess the risk of them filing a future claim. However, the formulas they use to calculate risk are all different. A driver might receive drastically different quotes for the same coverage from different insurers due to variations in the amount of emphasis placed on certain factors within an individual’s risk profile.
Examples of risk factors that could affect your car insurance rates include:
- The type of car you drive
- The age of the car you drive
- How much it would cost to repair or replace your vehicle
- The safety and anti-theft features on your vehicle
- The number of miles you drive each year
- Your driving record, including history of accidents, citations, and DUIs
- The number of insurance claims you have made in the past 5-7 years
- Your personal credit history
- Where you live and park your vehicle
- The age of all drivers on your policy
- And more
What You Can Do
Having a few negative risk factors can work against the cost of your premiums unless you know how to leverage the positive factors to your benefit. The first step is working with an independent insurance agent here at Integrity Insurance. We offer coverage from many different insurers, allowing us to connect you with one that will be more favorable toward your unique risks. By shopping around, we can help you get the same great coverage you need at a competitive price that better fits your budget.
We can also show you how making small changes can further lower your rates. For example, you may be able to reduce your costs by raising the deductible on your collision and comprehensive coverage. You may also qualify for added discounts if you:
- Enroll in an approved driver safety course
- Bundle your home and auto insurance with the same carrier
- Insure multiple vehicles under the same policy
- Remain claims free for an extended period of time
- Maintain a spotless driving record
- Have a teen driver with good grades
- Drive fewer than 10,000 miles per year
If you are not working with an independent agent here at Integrity Insurance yet, now is the time to act. Let us search for the coverage you need today. Contact us for your free quotes. We look forward to serving you soon.
