The Issues that Affect your Rates with Car Insurance

Car insurance is a must.An accident without insurance can be a huge financial burden, and driving without insurance is illegal in most places.Most people today are dealing with financial difficulties and finding ways to save money is important.Car insurance is one area that you may be able to save money on, and many people don't realize that there is a huge array of different factors which affect your insurance rates.Knowing the various things that can drive up your premiums may help you keep your monthly payments low and make it easier to make the rent or put groceries on the table.

First of all, there are a few basic things that you can do which will change the price you're paying for car insurance.The most obvious is simply to maintain a clean driving record.Avoiding accidents, tickets, and building up a solid history of safe driving experience will help tremendously.In fact, in most cases the longer you've driven, the lower your payments will be.Even your car can affect your car insurance payments.A fast, flashy sports care will cost more to insure than a sedan since there's a greater risk associated with it of both theft and accident.

You should also take the time to shop around.Simply taking the first quote you're given is the best way to pay too much for car insurance.Instead, comparison shop and get as many different quotes as you can so that you can compare the price of all of them and find the best option for you.Be sure to ask about discounts as well since most companies offer discounts if you bundle insurance coverage, have passed a defensive driving course, or have been with them for years.It never hurts to ask about discounts, and you may very well be able to save money.

Another thing that has an effect on the cost of your car insurance is to adjust your deductible.If you have a high deductible, you'll have to pay more out of pocket in the event of an accident before your insurance company will start to pick up the bill.This added risk on your shoulders can lower your monthly premiums and make it easier to pay all of your bills each month.The specific of your coverage will also affect the price you pay, and dropping unneeded features could save you money.A number of issues will affect your car insurance bill, and knowing them could help you save big.

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Factors that raise your car insurance premiums

Do you remember calling around for insurance quotes and finally finding a pretty decent insurance policy and now, years later, you’re calling your insurance company to ask why your premium continues to rise for no reason at all.

Car insurance rates can go up for many reasons. Some reasons for your rates rising are under your control and some reasons can be out of your control. Here is a list of some factors that may cause your car insurance premiums to rise:

Driving violations – If you consistently obtain traffic violations such as speeding, you can expect your premiums to increase as a result. The safer the driver you are considered to be, the lower your premium will be. If you continue to file claims, even if the reason doesn’t seem to be your fault, your rates are likely to go up. It’s always worth considering whether or not it’s worth to file the claim.

Your credit score – You may think your credit score has little to do with your insurance rates but for most insurance companies it is an indicator that you may be a higher risk in turn charging you a higher premium.

Economy – When times are tough, fraudulent activity in the insurance industry increases causing our insurance companies to cover millions of dollars in insurance fraud every year. With this comes a higher cost for our coverage.

Change in status – If you were married and are now single, if you have moved to an area that has more traffic or a higher crime rate, then your rate may increase. Some neighbourhoods have a higher rate of auto theft resulting in a higher premium.

Although car insurance rates are probably going to increase over time, you can always save yourself money by keeping a good driving record, increasing your deductibles or fixing any problems on your credit report. Also, if you notice a big jump in your rate, pick up the phone and talk to your insurance agent to confirm that it’s not some simple mistake that can be corrected easily.

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How to Save On Your Car Insurance in Canada

Car insurance premiums in Canada can vary by hundreds of dollars from one company to another. It’s hard to get a good deal on car insurance and even harder to keep your premiums from rising. We are always searching for ways to save so here are some suggestions:

Increasing your credit score – Almost all insurance companies pull a credit report because they see a connection between your credit score and the likelihood of you filing a claim. If you pay your bills in a timely manner and kept the same credit accounts for a while, you seem more stable that those who open and close accounts frequently. This is one factor that helps the insurer determine your insurance rate. You should clean up your credit history as soon as you can to start saving money.

Pay in Full – Not many people are able to pay their insurance annually. The majority payments are set up monthly or quarterly. Insurance companies charge a premium fee to break up the payments and the more you break them down, the more fees you will pay. If you’re able to pay in full, you will save yourself a few dollars, try to pay semi annually if not, try quarterly and if not, stick to monthly. Sometimes if you’re in financial hardship, the few dollars you save is not worth the pain of paying a big lump sum.

Higher Deductibles – When you file a claim, the deductible is the amount you pay before your insurance kicks in. The higher your deductible, the lower your premium so if you’re increasing your deductible from $500 to $1000 on collision, you can save yourself 30% or more. This means that if you had to file a claim and the claim was for $2000, you will have to pay the first $1000. If you have an older vehicle, it may not make financial sense to pay premiums for collision and comprehensive coverage, especially if the value of your vehicle is under $1000.

Buy a low profile car – Cars that have a high theft rate like a Honda or are expensive to repair have higher insurance rates. Prior to purchasing a car consider all the facts about the vehicle. Also keep in mind that many insurers give discounts for safety features such as car alarms, antilock brakes and air bags.

It’s always a good idea to maintain a relationship with your insurance agent or any creditor for that matter.

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