No matter what company you choose, there are three factors that are really important for your auto insurance premiums: your credit score, your car and your driving habits.
Make sure you understand how your credit report affects you insurance premiums and how you can repair a bad credit. If you think your credit score is hurting you, make a long-term plan to improve it.
Another part of your premium will depend on what kind of car you have and its equipment. Make no mistake, insurance companies keep track of vehicles causing the highest insurance losses. Those cars will end up with the highest premiums. If you are about to get a new car and want to cut insurance premiums, stay away from small and fast sports cars. Family-friendly four doors are a much better bet from an insurance point of view.
As an example, national average for insurance on Mercedes SL65 AMG Convertible is more than three times as high as a Chrysler Town & Country LX Minivan. For a full list of the highest and lowest rates, go to insure.com.
Modern cars are well-equipped when it comes to safety features. Air bags are standard in most cars, and they will save you money on the personal injury portion of your insurance. Full-front seat air-bags will save you more than just an air-bag on the driver side.
An anti-lock brake system (ABS) is also something most auto insurance companies look at when deciding on premiums.
The better anti-theft system you have, the better chance you have of getting a discount. Installing safety and security devices on your vehicle can pay off. Ask your insurance company what kind of discount they are willing to offer you for different devices.
Being a safe driver for a number of consecutive years will earn you substantial discounts on your premium with many companies. With some insurers you will also get a lower deductible. Staying accident and conviction free is on of the best things you can do to lower your rates.
Some companies offer safe driver programs or defensive driving courses in many states. Just by signing up and complete one of these courses, you will lower your premium. This is a great opportunity to review and improve your driving skills, and actually become a better driver.
You also want to have a record on how many miles you drive each year. If you drive less than you think you do, it may help getting a better rate.
When you covered the basics of your vehicle equipment and driving habits, you want to ask for other discounts like the following:
- Good student discount – Students with a good academic record could be eligible discounts.
- Military – Active or retired, most companies give something back to people who have serve their country.
- Group savings – If you are a member or employee of certain organizations, employers, or groups, you can get group discounts.
- Multi-policy – Bundle all your insurances with one company, and you might save even more.
- Loyalty – The longer you stay with company, the better your changes are of being eligible for loyalty discounts.