If you are purchasing auto insurance for your car, there are many things that can affect your premium. Some of these are bad ways and some good that can help your premium be lower. Below is more information about this so you will know how to talk with your insurance agent about your insurance premiums.
Affect in Bad Ways
One thing that may affect your insurance premiums is having bad credit. For example, many insurance companies will run a credit check on you. If they find that you have a low credit score or that you have been late on payments many times, they may offer you a higher insurance premium. This is because you are seen as a risk of making your payments on time.
If you live in an area that has a lot of congested traffic, this can also make your insurance premiums higher. This is because driving in a lot of traffic on a regular basis increases your risk of getting into an accident.
How often you drive your car also affects your premiums. This is because the more you drive the more you have a chance of wrecking. If you drive your car mostly for business, you are looking at more of a risk as you likely drive your car more.
Affect in Good Ways
There are many things that can affect your insurance premiums in good ways. For example, your age has a lot to do with it. This is because the older you get the more experience you are at driving which reduces the risk of getting into an accident.
If you are retired and do not drive often or you may work at home, talk with your insurance company. They will ask you to give them the year of your car and the mileage to help them determine how often you drive. If the number is low the insurance company may offer a lower premium.
If the car you drive has a high safety rating this can also lower your premiums. This is because you have a reduced chance of becoming injured in a car accident so the insurance company would not have to pay medical bills. For this reason, if you are shopping for a new car look at the safety rating as a factor in your buying choice.
Not all insurance companies work the same so make sure you talk to the insurance agent about these things.Share