For insurance companies to stay in business, they must adjust their premiums to offset risk. The greater the risk to insure someone, the higher the premium. For some of these risk factors, there are things you can do to minimize them and lower your car insurance premium.
The Type of Car
Car makes that have a high rate of theft, a poor safety record and are prone to damage and expensive repairs can cost more to insure. Before buying a car, do some research into those three factors and choose a make that rates well overall. This will not only save a lot of money over the life of your car, but may save your life if you get into an accident. It will also give peace of mind knowing that your car isn't the number one choice among car thieves.
The Age of Your Car
Cars depreciate in value over time and insurers adjust their rates accordingly. This is why the amount you pay for insurance on your car drops over the years of your ownership. When buying a used car, its age, and therefore its value, will factor into your premium.
How Closely You Fit Into the High Risk Driver Profile
Being single, male and under 25 years of age means you will pay higher premiums than drivers outside of this group. This is because accident rates are highest among these people. Insurance companies in some states will give discounts to young drivers who pass driver safety courses.
Your Credit Record
Insurance companies will charge more if you have a bad credit record. They do this to protect themselves. Customers who stop payments or never pay on time cost the insurance companies money.
Your Driving Record
Drivers who are cited for moving violations, road rage or found at fault for driving accidents pay higher premiums than those with a clean record. Some companies have a forgiveness factor for drivers whose records improve over time.
The more you drive, the more you expose yourself and your car to risk. This means your premiums are higher for high mileage rates.
Where You Drive Your Car
Some towns and cities have higher insurance claims than others. If you live and work in a city with high rates of accidents, theft and vandalism, your rates will be higher.
Some of these factors, such as driving and credit records, may take time to improve. However, your next car choice will have an immediate impact on your insurance rates and doing your research will pay off.
We’ll help you find the best deal. Call Insurance Beacon at (623) 584-0071 for more information on Phoenix auto insurance.