Factors that affect car insurance premium

July 16, 2014 in car insurance

Before buying any car insurance have knowledge on the basic procedures of what the car insurance process is all about. One of the major factors that make people to more concern about is the premium rates. No one can deny paying their premiums irrespective the costs that sums to a total. Know the factors that influence more on your premiums.

car insurance premium

Type of coverage

In the previous article it is clearly explained about the basic 5 types of coverage and the terms pertaining to it. The coverage policies form the major part of summing up the premiums. Opt for the best coverage that meets all your requirements, this will make for a less payment than taking more number of single policies.

Age and driving history

Many people are not aware that the age and driving history will also matter a lot in their car insurance. People who are under 25 pay the highest rates; this is because it falls under a long term policy where the claims can be made quite high when compared to the aged people. But still, the rates can be reduced if you maintain a fair driving history.

Increase the deductible for collision

It is always recommended to have high deductibles on collision coverage. You can save up to 30% in your premium if you raise the deductible from $100 to $1000.

Drop collision coverage on older cars

Collision coverage is the excellent policy plan that protects the car against accident in terms of financial loss. A huge amount needs to be paid for this type of coverage and the portion works perfect only for new and expensive cars. One cannot expect large collision claims on their old vehicle.

Check on the payment periods

It is suggested to pay premiums to every six months or 1 year depending up on the renewal date of car insurance. In some cases the monthly payments turned to be quite expensive and the portion of rates can be cut down with yearly payments.