Although it is not always possible, auto insurance companies aim to ensure that bad and risky drivers take the lion’s share of the cost. That is why there is an assessment process and it is why they ask you to fill in numerous forms. All that information is placed in a database and subjected to a risk algorithm in order to come up with a premium that is not going to make you a burden on the rest of the pool. So how can you ensure that your auto insurance premium is as low as possible? Here are some important factors.
With high deductibles you are essentially telling your auto insurance company that you are able to meet the costs of repairs to a great extent. Therefore they will feel as if your auto insurance is not going to expose them too much. Typically this will lead to a lower premium.
Safe and Reliable Cars
It makes sense that a car that has a good safety record and is not attractive to thieves is going to get a lower auto insurance premium. The highest costs are for those high value cars that have been involved in many accidents. If you drive them then the insurer will try to put you off by increasing your premium.
No Claims Discounts
Your history tells the insurer a lot about what you are likely to do when they sign you up for auto insurance. If you have had a clean record for three decades then it is highly unlikely that you are going to dash out and smash your car. That is why middle aged women tend to get a good deal overall.
Location and Neighborhood
Safe neighborhoods attract low auto insurance premiums because the insurer knows that they are unlikely to be subjected to crime-related claims. Unfortunately that means that projects and other high crime areas are out of the question. In fact some auto insurance providers go as far as withdrawing from any such localities.