5 Reasons Why You Have High Auto Insurance Premiums
Why do car insurance rates vary per insurer? They depend mainly on various risk factors that you can?t control and may not even be aware of it.
Choosing the right coverage is just the first step. Evaluating various features and many options that can optimize your auto insurance plan. So be mindful at the time of choosing an auto insurance plan.
Likewise, you and your friend may get the same insurance policy, and yet the rates are different. So why is that? Here are a few of the possible reasons why you have high auto insurance premiums.
The Car
Expensive vehicles usually have high insurance rates. But so do car models with a lot of claim experience. That is, if other people who drive the same model of car as you crash a lot, you?ll end up paying for more insurance. This also holds true if your choice of car attracts inexperienced drivers.
If you want lower insurance premiums, you might consider sticking with minivans and small- or medium-sized SUVs.
Not Asking about Discounts
When applying for car insurance, do not assume that your agents will lay out everything to you. Sometimes they won?t bother telling you about discounts you?re qualified for. So never hesitate to ask about your agent about every possible discount and why you do or do not qualify for it.
Poor Credit Rating
Your credit scores affect your insurance rates. While consumer pricing advocates deem this practice discriminatory, most insurers are allowed to consider credit history in calculating premiums.
Poor credit is sometimes worse than car accidents and can raise your rates up even more. So how can you resolve this issue? Improve your credit score, of course! Not only should you pay your car insurance rates on time, but other bills as well. That?s if you want to spend less on car insurance.
Loyalty
Your loyalty to one insurer can either get you discounts or higher insurance premiums. A lot of people think that shopping around for a new carrier every six months is the best way to save money but they?re missing out on the loyalty discounts some carriers provide.
Claims and Inquiries
Before you file a claim for minor damage, you might want to think about it. Actual claims and inquiries are recorded in a database. Thus, it can be accessed by other insurers. And your inquiries may count against you if you shop for new insurance.
While everyone wants lower premiums, it?s best to consider the quality of your policy for proper protection. Velox Insurance offers car insurance coverage that will protect you according to your needs. Get a quote from us today by clicking here or by visiting our office nearest you. You can also call as at 1-855-468-3569.
