DesignRJC

Ever wonder why your automotive insurance premium is so expensive? It is safe to say that you are probably not getting the best insurance premium you can afford. Sure, you have the good student discount for your daughter and sure you have a fairly clean driving record but why is it still so expensive?

The reason for expensive automotive insurance can be based on many different factors but there are so many loopholes in this system. Here are some facts you should know:

• Depending on your ZIP Code, if you live in a heavily populated area, your insurance premium can be much more expensive. The reason is because high density living areas can translate to more crimes and more car accidents.
• Girls insurance premium is about 50% cheaper than boys, no matter if your son has a good student discount. This trend starts to reverse as women and men’s age rises. Another interesting fact is if you are a married couple, the man’s insurance premium goes down and women’s actually go up, but the discount savings altogether is huge.
• Are you an engineer? A doctor? Have a PhD or some accreditation? Credentials matter and if you belong to a prestigious group, you may qualify for further discounts.
• Insurance milestones such as driving for 3 years, 6 years and 9 years qualify you in different programs. The more driving experience you have, the lower your insurance premium cost will be. However, you will also need to have a clean record but this gives you an idea when you can go shopping around for cheaper rates for your child.
• Discounts, discounts! Insurance agents have the ability to heavily discount based on many criterion such as a good driving record, if you have multiple lines insured with the same company, multiple cars and your vehicle as well. Example would be if you have a V8 car, the V6 version will be cheaper, because it has less horsepower soits not considered exotic and it will also be a less-expensive model.
• Insurance companies usually look through your driving record for the past 2 years for pointed tickets like traffic violations and 3 years past for accidents, whether your at fault or not. To them, its a money game; if they paid out, then you are a risk. The best is if you were involved in an accident, make sure to have documentation to prove you were not at fault and the other insurance paid out.
• Never be a road warrior, even if you are. The reason is, if you claim to drive 30,000 miles a year, the risk of you being on the road and getting into an accident is higher as opposed to driving less than 7,500 miles. So if you own two cars where one is brand new and you want full coverage; even if it is your daily driver, let the insurance agent know that this is just your weekend car. Your higher driving mileage vehicle should be a beat down cheap automobile that will only require the basic liability.
• How to get what you need? Decide on what your needs are. I say only brand new cars, luxury cars, exotic cars will need insurance. Anything else; just go with basic liability but do not forget to get uninsured motorist insurance. The reason is should you get involved with a hit and run or someone hit you and they do not have insurance, you may have to cover these expensive losses or injuries yourself.

This article is a bit of insight to how the insurance industry works on evaluating a person’s insurance cost. It is somewhat based on risk, past behavior and a whole lot of assumptions. This should gain you some knowledge on how to shop smart for auto insurance.