5 Things You Didn't Realize Affect Your Auto Insurance Rates

9 September 2015 by Elijah Steward

When you get auto insurance, you should shop around for the best rate. It is important to understand what affects the rates that you are offered. Understanding this may help you to qualify for a better rate. Some of the factors are not under your control, but some are, and you may want to look at improving them.

Your Driving Record

This is the part of your history that is most under your control. If you have a poor driving record, you may have a difficult time finding good auto insurance rates. The tickets and other violations will drop off of your record after three years. CNN recommends taking a defensive driving course as a way to save money. If you have a poor driving history ask your insurance company if that can help to lower your premium. 

Your Demographics

Your age and gender can affect your insurance rates. This is not something that you have control over, but it helps to know about it so that you can ask for a lower premium once you are twenty-five years old. If you get married, it can also drop your premium, so be sure to mention it if your marital status changes. The neighborhood that you live in can also affect your rates. Additionally each state has a slightly different set of rules for determining your car insurance rate.

Your Credit History

Many people do not realize that their credit history affects how much they pay for car insurance. The lower your credit score, the higher your premium, even if you never make a claim. You can work on improving your credit score by making all of your payments on time and reducing the amount of debt that you have. This can take time to clear up, but it can make a difference in your rates.

Making a Claim

If you make a claim, it can affect your insurance rates, even if you did not do anything to cause the damage to your car. If the repair is less than $1000, you may want to try to pay for it yourself. This can save you by preventing your premium from going up next year. If the damage is purely cosmetic like a small ding in the door from another car, you may consider not making the repair at all.

Too Much Coverage

It is important to get the right balance of coverage. A lower deductible will make your rates go up. Adding additional liability insurance can make your rates go up. A good number for that is to get $100,000 per person with $300,000 per accident. Also look at the amount you have in property damage. You can consider add-ons like towing, rental insurance and glass breakage to find ways to save on your coverage. 

Check out companies like Consumers Coverage Corporation for more information about auto insurance.

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