Lower Your Insurance Premium with Tips from AIG Auto Insurance Company
So many factors come together to determine the cost of your auto insurance policy; here are some recommendations from AIG Auto Insurance Company on the best ways to lower your premiums. The average driver spends about $850 a year on auto insurance. You premium could be higher or lower than this rate based on a variety of reasons. Many policy holders are unaware of the many ways they can save money and lower their insurance premium.
Maintain a Good Driving Record
If you have a good driving record, your premium will be lower. The more accidents or traffic violations on your record, the higher premium cost you will end up paying. Also, if you have been uninsured for a period of time, you could have to pay more for coverage when you need it.
Ask About Low Mileage Discounts
The more miles that you drive your car each year, the higher your chances are of being involved in an accident. If you drive less than 45 miles a day, or 10,000 miles a year, many insurance companies will reduce your premium. You could also qualify for an additional discount if you carpool to work. That could save you on gas money too.
Your Location Can Affect Your Premium
Your location can also be a determining factor in your premium cost. Areas with a higher population may be considered a higher risk for accidents, car theft, and law suits. Car repairs and the cost for medical treatment in your area can affect your premium as well. If you live in a large city there can be reduced rates for living in the suburbs versus living in the city.
Inexperienced Drivers Pay More
Younger drivers, especially teen drivers, cost more to insure due to their inexperience behind the wheel. Car crashes are the number one cause of death for young people between the ages of 15 and 20. Young drivers are three times more likely to die in a car crash than more mature drivers between the ages of 25 to 65. Young drivers between the ages of 15 to 21 are also reported to have more accidents than any other age group. Between the ages of 16 and 19 years, the crash rate is nearly six times higher than for drivers ages 20 to 24.
Vehicle Type can Influence Insurance Rates
Some cars cost more to insure than others. Several variables can determine premium costs. Companies mainly look at the likelihood of theft, vehicle repair costs, and the car’s safety record when setting premiums. Sporty vehicles that drive at higher rates of speed are considered more dangerous and carry higher insurance rates than more practical models. So decide if that sporty model makes sense to your bank account before you drive it off the lot.
Avoid Being Underinsured
Even though your goal is to get the best insurance rate, you should also guard against being underinsured. The average insurance policy alone may not offer adequate protection if an accident occurred and additional judgments were brought against the driver. Additional coverage could actually end up saving you money in the long run. Keep in mind that you pay for any additional coverage. The more coverage you have the more you will pay; but you could end up saving down the road.
Get your free quote today. Visit the AIG Auto Insurance Company homepage and enter your zip code into the quote box to receive a competitive insurance quote.
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November 5, 2012November 5, 2012 0 Comments