You may be surprised to learn that your everyday behaviors can affect how much you pay for car insurance. Since providers use a list of criteria to gauge risk at the time you apply for insurance, there are behaviors you may have implemented that may make your premium much higher than it needs to be. To help you find ways to lower your current rates, it's first important to be mindful of these costly behaviors.
You Pay Bills Late
Most car insurance providers will check your credit score when you apply for a premium. They do this because they want to see whether you will be dependable in paying your premiums on time. If your credit score is low due to late or missed payments, this may draw a red flag from the insurance company. In turn, they may still allow you to receive coverage, but they may assess you as being riskier because of your shaky financial footing. This means you'll have to pay more than someone with a good credit score.
You Buy Newer Vehicles Regularly
While it's nice to treat yourself to a new vehicle occasionally, if you are someone that trades cars in for new models regularly you may end up paying more to insure it. The reason for this is if you incur a total loss on a new vehicle, the insurance company, if they approve the claim, will pay the fair market value on the vehicle, which will be significantly more than if you owned an older model, non luxury car. With this in mind, you will pay more to insure a newer car because you represent a risk, as the insurance company has to pay more out of pocket if an accident occurs.
You Have Risky Driving Behaviors
If you have multiple moving violations you are showing a pattern of poor driving behaviors to your insurance provider. This will draw concern from them because your behaviors make you a riskier candidate for insurance. This risk equates in you still receiving coverage, but at a much higher price than safer drivers. In addition, if you put many miles on your vehicle annually you will pay a higher price for a premium since you represent a greater risk to the insurance provider.
You Have Too Much Coverage
It's a great idea to have ample financial protection in place just in case you need it. With that said, you might be able to save money on your car insurance premium by tinkering with your policy. If you can afford it, you may want to consider raising your deductible amount, which is the sum you have to pay on an approved claim before insurance pays. While this may open you up to higher out of pocket expenses if an accident occurs, a larger deductible also means lower premiums. It's important to note though if your vehicle is under a personal auto loan or lease, be sure to consult with your lender to see if they have a minimum deductible amount before raising it.