5 Reasons Why You Will Pay More For Auto Insurance
Having car insurance is necessary for all drivers, so having good coverage should be a priority when shopping for a plan.
However, you will still want to have a plan that is affordable and doesn't have you paying through the roof each month.
If you're having a hard time finding decent quotes, there could be a number of reasons why you have to pay higher premiums than other people.
Here are five areas you might want to look at to see if you can lower your rate.
1.
Type of Car.
If you have a new, expensive car you are going to end up paying a substantially higher premium than a used car.
Also, sporty cars with bigger engines are placed in the higher risk category, so you might want to consider something with less power.
The same also goes for any modifications.
If you get alloy wheels and a spoiler, it has the potential to raise your price, so avoid tinkering with your car if you can.
2.
Driving Record.
Your driving record will have the biggest impact on the rate you will pay for insurance.
If you have any speeding tickets or accidents on your record, you'll likely be paying higher premiums until your record is wiped clean, which can often take several years to do.
3.
Occupation.
Certain occupations are considered higher risk, regardless of your actual driving record.
For example, engineers have the lowest risk associated with them, whereas real estate agents and journalists are in the highest risk category.
4.
Where You Live.
If you live in a big city with street parking, you should expect to pay more than if you lived in the country with a two car garage.
Because theft is higher in urban settings, insurance companies will hike up prices to compensate.
However, sometimes premiums will be higher in the nicer areas of town because of the risk of damage to expensive vehicles.
5.
Credit Score.
More and more insurance companies are checking credit scores, and modifying the price you pay based on this number.
In order to avoid price hikes, make sure you keep your score in tip top shape, monitor it on a daily basis, and contact the credit bureau to clear up any errors.
Regardless of what you think your risks may be, always shop around and get multiple auto insurance quotes.
You may be surprised at what you find.
Just being aware of these risks will save more money in the long run.
However, you will still want to have a plan that is affordable and doesn't have you paying through the roof each month.
If you're having a hard time finding decent quotes, there could be a number of reasons why you have to pay higher premiums than other people.
Here are five areas you might want to look at to see if you can lower your rate.
1.
Type of Car.
If you have a new, expensive car you are going to end up paying a substantially higher premium than a used car.
Also, sporty cars with bigger engines are placed in the higher risk category, so you might want to consider something with less power.
The same also goes for any modifications.
If you get alloy wheels and a spoiler, it has the potential to raise your price, so avoid tinkering with your car if you can.
2.
Driving Record.
Your driving record will have the biggest impact on the rate you will pay for insurance.
If you have any speeding tickets or accidents on your record, you'll likely be paying higher premiums until your record is wiped clean, which can often take several years to do.
3.
Occupation.
Certain occupations are considered higher risk, regardless of your actual driving record.
For example, engineers have the lowest risk associated with them, whereas real estate agents and journalists are in the highest risk category.
4.
Where You Live.
If you live in a big city with street parking, you should expect to pay more than if you lived in the country with a two car garage.
Because theft is higher in urban settings, insurance companies will hike up prices to compensate.
However, sometimes premiums will be higher in the nicer areas of town because of the risk of damage to expensive vehicles.
5.
Credit Score.
More and more insurance companies are checking credit scores, and modifying the price you pay based on this number.
In order to avoid price hikes, make sure you keep your score in tip top shape, monitor it on a daily basis, and contact the credit bureau to clear up any errors.
Regardless of what you think your risks may be, always shop around and get multiple auto insurance quotes.
You may be surprised at what you find.
Just being aware of these risks will save more money in the long run.
Source...