Tips to Reduce Your Car Insurance Premium


What is the most important factor in setting car insurance premiums? You might be surprised it is not your driving record.

Your credit profile can have more significance in your premium. Insurance companies are looking to see how long and how well you have managed your credit. Their focus is stability. A poor credit rating can add 20% to 50% to your premium cost. Before shopping for car insurance, check your credit rating.

A poor driving record can increase your premium. You have points given for each traffic violation. They stay on your record for three years. You can take a defensive driving class – once every three years – in order to drop your total score by three points.

The kind of car you drive influences your insurance premium. Insurance companies are looking at national data on safety ratings – which cars have the most thefts, accidents and damage claims. How expensive a car is to repair is also a factor. Luxury cars and cars with turbo engines have higher premiums than minivans. will give you the top 10 best rated cars for insuring, as well as the worst 10 cars.

However, the safety features in your car can give you a discount on your premium. Antilock brakes, airbags and GPS tracking devices are a few features that will earn you a discount with most car insurance companies.

Other factors that affect your premium rates are:

  • Age – younger and older drivers are tagged with more premiums, which is based on national statistics of accidents and claims;
  • Mileage – how many miles you drive on average in a year;
  • Parking – where you park your car overnight; whether in a garage or on the street.

You might consider a higher deductible of $500 or $1,000. This reduces your premium. You are also less likely to file a claim for small items. stated people that made claims against their insurance in 2015 saw an average premium increase of 44%.

You also receive discounts for multiple vehicle coverage and multiple policies, such as car insurance and homeowners’ or renters’ insurance.

I hope these posting have encouraged you to review your car insurance. I am glad I took the time – it reduced our bill by over $600.


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