How to Help Maintain Your Auto Insurance Rate

by News Guy on September 1, 2010

(Guest post by 21st Century Insurance)

Let’s face it. Stability seems to be more elusive than ever right now. No matter what walk of life you are from, it’s hard to feel comfortable with the current ever-changing landscape of the economy. But not everything has to be so up and down. Today I’d like to help you figure out how to maintain a balanced auto insurance rate. What does your provider consider when putting together your auto insurance policy? What factors affect your rate?

If you didn’t know already, a lot of insurance companies base their auto insurance policy rates on statistics. Age is one of the most influential factors. Over the years, insurance companies have calculated which age groups are more likely to get involved in auto accidents. Unfortunately, this isn’t a factor you have any control over. However, keeping a good driving record always helps when you are trying to maintain your auto insurance rate. Avoiding tickets, more serious violations and accidents are definitely good ways to keep your rates from jumping.

You already know that you need good credit in order to buy a car. But did you know that your credit history can influence your auto insurance rate? It’s important to note that not all insurance companies will take the time to check your credit before giving you a quote. Some only check your driving record. But in today’s economy, a credit check can be a more important factor in determining auto insurance rates than ever.

Remember to avoid gaps in your insurance coverage because as far as insurance providers are concerned, any lapse in your auto insurance policy, either through non-payment or as a result of a moving violation, makes you a risky investment. And while auto theft can unfairly increase your auto insurance rate, there are ways to prevent this from happening. Anti-theft devices may be good deterrents and could possibly get you a discount. Also the locations where you spend time can be a contributing factor to the chances of your car being stolen.

Basically, auto insurance rates are determined by your provider making a prediction about the likelihood of you filing a claim – the lower the chance, the lower the rate. Taking these tips into account can help you avoid making mistakes that might negatively affect your auto insurance policy.

Like this Article? Sign up for our Newsletter

We respect your email privacy

{ 2 comments… read them below or add one }

Edward - Entry Level Dilemma September 1, 2010 at 12:31 pm

I hate this. When insurance companies started using credit scores to determine rates a few years ago, my parent’s rates increased almost 20%. They have chronically bad credit but excellent driving histories. My mother has never gotten a traffic ticket. Yet, suddenly with a change in the law, my parents became 20% riskier of filing a claim overnight.

News Guy September 1, 2010 at 9:09 pm

Oh man, that blows! Sorry to hear bro. I can understand why they use that score as a basis, but there’s gotta be some room for special cases like your mom. That’s unfortunate.

Leave a Comment

This blog is kept spam free by WP-SpamFree.

Previous post:

Next post: