How to Reduce Car Insurance Premium:
Oct 4th, 2007 by Kaushik Adhikary
Image via WikipediaIts true that your car insurance premium use to consume a good portion of your budget allocation. So, you obviously like to bargain for bring down the car insurance premium as much as possible. But before that you have to identify what factors virtually affect your car insurance premium or how insurance companies calculate your premium.
Well, among plenty of factors, two major factors normally tend to increase or decrease your car insurance premium.Your ‘age’ and ‘gender’.Now you may think,’How does my age affect my car insurance premium?’Well, if you are a teen, you’ll surely have to pay higher premium(being a bad risk) for your car insurance.
This is because, teenage drivers have a tendency to drive car fast out of their passion, that increases the chance of accident manifold. But still, you may get a discount if you are undergoing a driving training course such as PassPlus in the U.K.
If you are(under the age of 25) a student in the U.S. with good academic records or a resident student living away from your home, you may get a good student discount.Your daily average driving distance out to your workplace actually can increase your premium. Age-old drivers, however may get retirement discounts for their car insurance premiums as they tend to drive lower average distance.
Now, you may be eager to know how ‘gender’ can reduce your car insurance premium. Statistics show that women tend to drive less daily average distance and have lower number of reported accidents than men.That’s why insurance companies used to offer discounts to women drivers. But that raises some ethical questions being biased to them in charging lower premium.
Your car make and model substantially increase your car insurance premium. How? Well, statistics show that popular lightly built cars such as Honda Accord, BMW, Toyota, Land Cruiser SUV have less survival rates in two fatal car accidents(6-8% chance of death). But more safer cars such as Volvo(3-4%), Jaguar XJ(1%), Marcedes Benz S-Class(1%), Land Rover Defender and Discovery(1%)offer discount in premiums.
Some models are more theft-prone(Honda Civic,Toyota Camery etc.) and can increase your car insurance premium. But if you install a certain anti-theft devices such as alarm device, immobilization device, tracking deice, your car insurance company may likely to reduce your premium. Your type of coverages you choose, also determine car insurance premium.
Frequent claims, changing the number of drivers for your car, frequent traffic violations will increase your car insurance premiums. If you are at fault for your car accident, your insurers might increase the premium. If you are reckless and risky on road, premiums can be higher. Insurance companies like safer drivers on road having clean driving records.
Shopping around for your new car on the internet or asking for recommendations from your friends or looking for at least 3 quotes is a good idea for getting cheaper insurance coverages. And gettingcheap car insurance quotes on the net is the fastest one.
Buying multiple insurance policies from the same insurer or requesting for a higher deductibles can reduce your car insurance premiums. By keeping a good credit score, you can win the favor of your insurers to get a discount in premium. One of the best option would be to get low car insurance option for life and discover how to slash your car insurance cost up to 67% for life. Just check this out going to my blog.
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To your healthy financial life
Kaushik
