Are you a saver or a spender?
Frugal should be my middle name since I always look for ways to save a buck or two.
I clip digital coupons.
I use money-saving apps when I shop.
I simply love the clearance rack at the stores.
Being frugal is not easy and it is sometimes frustrating. You need to put in the work and the time in to save money. In reality, the same thing applies to your auto insurance. Shopping around is always the best way to compare and save, but did you realize that a lot of things go into the factors of your premium costs?
Let me touch on a few.
Yes, your age is a very significant factor, especially for the most expensive group to insure: teen drivers. Insurance companies view teen drivers as very risky and expensive to insure. After all, they have no experience, and may often become distracted by many things including their cell phone and their friends. The most affordable age group to insure are 50-year-olds. 70+ year olds’ premiums will be higher than your premium at 50, due to aging eyes, and other physical liabilities that happen as you age.
Your driving history
Insurance companies see a driver’s past as an accurate predictor of future driving. Have you had a lot of speeding tickets? Several accidents? A DUI? All these will impact your premium prices.
Your credit score
Believe it or not, keeping your credit score good really helps with car insurance premiums. Drivers with poor scores usually file more claims than drivers with better credit scores do. And when they do file claims, they are generally more expensive than claims from drivers with good credit. Keep your credit good!
Years of driving experience
This rating factor pretty much explains itself. The more experience you have behind the wheel of a car or truck, the less likely you are to make the mistakes that will lead to violations and claims. You are less risky as a client. Drivers with many years of experience typically will enjoy lower insurance premiums that newer drivers do.
Where you live functions as a rating factor on two levels: state and zip code. Car insurance is regulated at the state level and subject to each state’s regulations. Zip code is used to help insurance companies adjust for the external rating factors associated with each area. For example, higher insurance costs are associated with more drivers driving, flooding, wildfires, crime rate, etc. In many cases, rural areas pay less than urban areas.
Pretty good stuff, right? And these are just a few ways money can be saved. Next month I will touch on a few more ways to save money on insurance along with other pertinent information you won’t want to miss!
And always remember, call the insurance experts at Citywide Insurance for any questions you may have about this and other insurance-related topics. That is what we are here for. Your satisfaction and to help you save money.