Getting car insurance quotes is a real drag for most of us. Which is why many of us will remain with the same company for years, even if they are not giving us the best price. It would seem that if you have paid thousands of dollars into your provider over the years, that they would reward you with a lower premium. But that is not the way it usually goes.
Of course, some things are out of your control such as your age or where you live that will affect your car insurance premiums, but there are other factors that you can control and that will reduce your rates.
- The Type of Car You Drive: It should go without saying, but if you drive a fast sports car, your car insurance will be more. People who drive Mustangs or Corvettes will pay more for the exact same coverage with all the exact same other factors. No matter what your age or driving record, these types of cars will cause your promotions to increase. But it is not only fast cars that can do this, if your car is listed as one that gets stolen more often, this too will increase your rates.
- Your Deductible: Choosing a higher deductible will lower your monthly insurance bill. The deductible is how much money you will have to pay out of your own pocket before your insurance kicks in. Usually, you will see a noticeable savings when you change from a $ 500 to a $ 1000 deductible.
- Your Grades: If you are a student, then getting good grades will result in lower car insurance premiums. Sometimes this can be as much as 10 to 15% for a 3.0 and above. Who says you can not get paid for good grades?
- Your Credit Rating: Many of the insurance companies check your credit rating. A good credit score likely means that you are responsible and trustworthy. This is something that the insurance companies like to see. They want to know that you take care of your bills, so translating to you take care of your stuff – like your car.
- Monthly Premium Payments: If you decide to pay your premium on a monthly basis, your rate will be a little bit higher. However, if you pay for it as six months at a time, you will receive a lower bill. Usually they call it processing fees but the bottom line is that they like to have all of their money up front.