Car Insurance Premiums and how to Lower them
Are you one of those who gets confused with all the different insurance lingo that is thrown about? Does it sound strange? Like a foreign language when a broker is talking liability, comprehensive, and annuity policies? Insurance is a huge industry that makes up a significant chunk of the American economy. Learning the basics will help you make better-informed decisions, that could get you better coverage at lower rates. Let us take a closer look at car insurance premiums and how to lower them, so you can save more.
An automobile insurance premium is simply the expense or cost of your current policy. You should keep in mind that all premiums are not alike at all. They are based on many factors like the amount of coverage you get, your driving history, and the car you own, just to name a few.
When are Car Insurance Premiums Paid?
If you do not pay your insurance bill, it will get canceled, so on-time payment is super important. Almost every insurance company has options for payments. Some people, they cannot afford to pay the yearly premium in full all at once and set up autopay monthly payments. Most carriers also have convenient online payment systems in place, where customers can pay their bills in minutes or create automatic deductions in monthly or bi-yearly installments. On the other hand, if you have the money to pay for your insurance in full, most providers will offer a discount of 2% or so, which makes it a smart choice. Get a totally free online quote with the Praetorian insurance company today and save hundreds.
The Costs involved in Automobile Insurance Premiums
Among the biggest factors that will determine the cost of your vehicle policy is the amount of coverage, you decide to get. The more you are protected, the more you will pay in premiums. If you have substantial assets built up and drive a car you have invested much money in, you definitely should consider getting plenty of protection. Each state except New Hampshire requires drivers to get basic liability insurance. While liability is the cheapest type of automobile insurance, it more than likely will not cover you in the unfortunate event you get into a far-reaching at-fault accident.
Liability insurance can be purchased for as low as $29 in some areas of the country, depending of course on your driving record, the car you drive, and other things. The type of policy you decide to get also will affect your rates. This includes collision, comprehensive, and adding uninsured motorist protection. Comprehensive insurance will protect you from just about anything that affects your vehicle, other than a collision with another car.
It is also worth noting that every state has an insurance department that sets forth regulations and laws. This includes the minimum amount of coverage drivers are required to obtain, as well as requirements that insurers must abide by. You should always check the updated laws in your area before you buy a policy, just to make sure you are aware of any new changes.
Your Deductible will affect your Insurance Premiums
The price you pay for your insurance will be in part determined by the deductible amount you choose. This means the “out-of-pocket” cost you agree to pay in the event a claim is filed. Deductibles and premiums have an opposite relationship. This means the higher you set your deductible; the lower your premiums will be. Conversely, the lower the deductible (the amount you are obligated to pay before the insurance kicks in) the higher your ins costs will be. Most advisors recommend getting a higher deductible of $1,000. This will save you about 10% annually on the price of coverage, but you need to be sure to put aside the $1K, so you are prepared if an incident ever happens and you need to file a claim.
How to Get a Cheaper Car Insurance Premium
Insurance premiums are calculated by using complex algorithms that determine your risk level, along with the type of coverage you are getting. Insurers use everything from a person’s age, sex, credit rating, education, and zip code, just to name a few. A clean and natural way to lower your car insurance premium is to demonstrate you are not a risky driver. This means keeping a good credit rating, (pay your bills on time) avoiding driving infractions, and owning a car that’s cheaper to insure.
Another thing that’s important in getting more competitive policies is to shop around. At the Praetorian insurance company, we have been helping people save money on auto ins for many years. We do the most important thing and all the hard work, by searching dozens of leading providers, to get you covered at the best rates available. Check it out for yourself and see how much you can save with an online custom quote.