Unless you live in Virginia or New Hampshire, every other American driver is required, by state law, to have insurance before you can take to the road. For people who are shopping around for their own auto insurance policy for the first time, there are many things to think about. One of those things is what you can do to raise or lower the premiums you pay every month. Here are five factors that might lower or raise your insurance premiums.
Adding A Teenage Driver
The recklessness of youth combined with inexperience can be a dangerous mix, and insurance companies treat it that way. Once you have someone in your family old enough to get a driver’s license, adding that young driver to your insurance policy tends to raise premiums due to the risk. This can be mitigated somewhat by taking precautions, like sending the teen to a certified driving school, but the “spike” in premiums is always there to some degree.
Taking Mechanical Precautions
If you take any action that makes your car safer, some insurance companies will notice this and reward you with reduced premiums. Notable actions include installing car alarms that would help to reduce theft or vandalism, or installing a dashcam that would make it easier to verify who is at fault in a car accident. Anything that reduces your risk is something insurance companies like.
Low Mileage Discounts
If you don’t drive often, you can get a discount for this. “Low mileage discounts” are a way to recognize the fact that a person is on the road less than other drivers, and thus less exposure to risk. Someone who lives in a city and commutes using public transportation, only driving on weekends, for example, might qualify for a low mileage discount.
Statistically, people who get married tend to drive less frequently and more safely than single drivers. As a result, car insurance companies often reward people who get married at lower rates to reflect the fact the “wild days” are over, and a more responsible stage in life has been embarked upon. It’s just a natural consequence of being in a relationship, staying at home more, and starting a family.
Your Previous Claims
This may go up or down, depending on your insurance record. When applying for new insurance, insurance companies will look not just at your credit rating, but your insurance activity. If you’re seen to have made many claims, and you’re usually at fault, the insurance company is going to raise your premiums.
On the other hand, if you have many claims, but it’s just a string of bad luck, and you’re not the one at fault, this may not have any effect on your insurance rates, or may even result in lower ones.
If you’re interested in auto insurance for yourself, or just have some questions, we can help. Contact Panorama Insurance Agency Inc, and ask us all your insurance questions, and let us address your concerns.