Everybody wants to reduce auto insurance costs.
Understanding what matters most to underwriters might be the best place to start.
Following are some things to consider:
Statistical Safety Record
Without a doubt, the most important item is safety, but that includes criteria that may not be obvious.
For example, new drivers tend to have safe records because they haven’t established a history. Therefore, they are unproven. Counter the impact by taking a driver’s education course to show you’re safety conscious.
Experienced drivers should focus on remaining accident-free and abiding by traffic laws.
Gender, age and even zip code have a major impact on auto insurance rates. Some can be dealt with, while others can’t. For example, younger male drivers statistically have more accidents, so they tend to pay more. Likewise, if you live or work in an accident-prone area, expect to see higher rates. Installing an approved security system and parking indoors at all times might help.
Perhaps one of the most frequently forgotten criteria is the number of miles driven each year. While you may not be able to reduce the total number of miles driven to and from work or school, it is still possible to reduce the total cost of coverage.
Consider carpooling once or twice a week, taking public transportation or squeezing in a little exercise for quick commutes.
Over time, it all adds up to fewer miles and less costly auto coverage.
Last but not least, other drivers that have access to your automobile are likely to impact rates.
In some cases, it is actually more cost-effective to purchase a second vehicle and help pay for an individual insurance policy than include a secondary driver, especially if liability is a major concern.
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