10 Personal Choices that Influence Auto Insurance Premiums

When looking at a quote you see a dollar amount but many details are considered before arriving to that figure. Some of those are external and nothing can be done about them. However, a few of those influential factors are personal choices and you can play with them to get cheap car insurance premium in short, medium and long term. Here are some of those individual preferences that reflect on rates negatively or positively.

1)      Car Choice: When buying an expensive, sporty automobile, SUV or 4×4 you probably know that their coverage will cost a lot more. You need to either accept this fact or go for a standard family sedan which has reasonably cheap ratings. You can find out about its ratings or the exact cost of insuring it by getting a few quotes before making the purchase. It is too late to learn once it is home.

2)      Claims Made and Avoided: You would probably be surprised to see this on the list but some claims can be avoided. Alternatively, you can elect to settle the damages out of pocket and keep quiet about it. Being claim happy will cost as early as from next renewal. Therefore, you may need to think for a few minutes before calling the insurer next time you suffer an isolate incident where there weren’t any third party involvements.

3)      Credit Record:  You are in charge of earnings and spendings. Some people may have a bad credit score due to unavoidable circumstances like loss of a job. However, many more people run into money problems as they lack control and spend money like there is no tomorrow. You can probably cut automobile insurance costs as much as a quarter by maintaining a good credit history. It certainly is worth the effort. Besides, it looks good.

4)      Traffic Tickets Received: Again you have to take responsibility for driving failures. Initially, you may think that it was unlucky or the police officer was mean. But you will have to come to terms that it was down to an individual misjudgement. In order to keep premiums low you will need to avoid violating traffic rules. There is no two ways about it.

5)      Coverage Required: When you sit down in a restaurant and have a starter, main meal, desert and a few drinks with it the bill is expected to be higher than just getting take outs or cooking at home. The same applies to policies as well. The more are added the higher the prices get. You need to think about what is really needed and what you can afford to leave out. There are no frill full vehicle insurance policies in the market that can be purchased at a reasonable cost. And there are the ones that cover tens of things you will never need and still pay for handsomely.

6)      Deductibles Ignored: Many people don’t think twice about deductibles and some people desperately want them to be as low as possible. There is a price for everything and the price of low deductibles is higher premium. Next time inquire about different levels of deductibles and how it would change the cost. Or simply you can get quotes with higher and lower amounts online and see if there will be any meaningful difference to take an action on.

7)      Payment Method Elected: It sounds nice to spread the premium over several months but if there is no additional charges. In most cases there would be additional fees and interest since it is a credit arrangement from the insurer or a separate financial institution. Technically, it is due at the time of policy inception. Furthermore, you may get extra discounts for paying it in full with some companies.

8)      The Way Policies Are Arranged: You may have another car, a home or a renters’ plan and may be buying them all separately from different sources. You can save money by bundling policies, arranging a multi-car plan for all vehicles (including RVs in some cases) or cover home and autos with the same company for maximum impact. There may be several combinations depending on the personal circumstances.

9)      Who Provides Roadside Assistance: Recovery services provided by carriers are limited as compared to services like AAA. Also, some carriers can monitor the recovery call outs and increase the premium if there are a few of them. Logically, either the car isn’t being looked after or you are naturally careless if rescue vans were requested on a regular basis. Both cases cause concerns on the other end. That is why independent breakdown services can be more advantages in many ways.

10)   The Way You Shop for Vehicle Insurance: You may be a great driver with excellent credit history and no negative record on your name and yet an average driver can pay cheaper for the same type of coverage for a similar vehicle. The reason is simple because they shop around for the best deals. You should always get a few quotes and compare them before pulling out a wallet faster than a western gunslinger in the movies.

Hopefully, the points and their influences are clear. See if you could alter some of the above personal preferences in a way to lead to lower auto insurance quotes. Alternatively, you acknowledge why a typical motorist for the similar car and coverage would pay less than you and have no complaints about it. It is best to see things as they are and decide if you are going to do anything about it or leave it the way they are.

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