Car Insurance Premiums – Lesser Known Ways to Reduce Auto Insurance Rates

To qualify for a sporting event, an athlete has to satisfy certain criteria. Similarly, to qualify for reduced car insurance rates, you must satisfy certain criteria. Qualifying for reduced rates is not about being cheap and cutting corners on car insurance. Instead, it involves being prudent – reducing your risk of damage, theft and injury or taking advantage of incentives. There are a few little known ways to qualify for reduced car insurance rates.

1) Obtain a defensive driving certificate

2) Reduce your car’s mileage

3) Maintain a good credit rating

4) Increase deductibles

5) Choose an insurance-friendly vehicle

Obtain a defensive driving certificate

Successfully completing a safe-driving course or possessing a defensive driving certificate would also classify you as a safe driver. This is a useful qualification factor for teen drivers and drivers without much driving experience.

Reduce mileage

With the increase in fuel costs, some drivers are driving far less and consolidating trips. The good news is that fuel savings will also lead to auto insurance rate reduction. More insurers now use mileage as a single-factor rating criterion and track vehicle use to classify applicants.

Maintain a good credit rating

Statistics that insurers use show a link between credit scores and insurability risks. If you maintain a good credit rating, you will qualify for reduced rates on this basis.

Increase deductibles

When you increase deductibles to amounts that you can comfortably afford, you qualify for reduced rates by reducing the likelihood that you will make a claim.The danger of self-insuring using deductibles is that you might be tempted to increase it to an amount far above what you can comfortably cover in the event of loss.

Choose an insurance-friendly car

Not all vehicles are equal- not just in terms of price and style. Insurers classify some vehicles as higher risks based on certain variables. Cost of repairs and replacement is a significant consideration. Some vehicles have a higher risk of theft while others may not have sufficient safety features to mitigate the risk of bodily injury. Information on these is readily available and should form part of your purchasing decision. The type of vehicle that you choose can help you qualify for reduced car insurance rates while decreasing the risk of inconvenience caused by loss, damage and injury.

There are several other ways to qualify for rates, which may not always be feasible for everyone. These include:

i) Getting co-insured with safer or more experienced driver (25+ and 55-60)

ii) Pursuing higher education

iii) Limiting the users of your vehicle

iv) Using actual cash value coverage

v) If you are changing location, move to an area of lower/similar risk.

vi) Not making claims that you can afford to settle out of pocket (though you should report it)

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