Car insurance is a major, but necessary expense for many households. With last year’s reports showing that the average cost of car insurance has been on the rise, it makes sense that drivers would want to save as much as possible on their coverage. Of course, prices for car insurance are not as cut-and-dry as the price for a gallon of milk. Shopping around takes a lot of time and effort unless you are working with an independent insurance agency like Ellis Insurance. Our team shops and compares rates on your behalf and also understand the types of factors that can raise or lower your costs.
Factors that Affect the Cost of Car Insurance
There are many factors that can affect your insurance rates, all of which are looked at with varying amounts of emphasis between insurers. Few people have a perfect score across all categories, but that does not mean they should pay more for coverage. The key is working with an independent agent who will find the insurance carrier that is more lenient on your individual risk factors than other insurers may be.
Examples of factors that affect car insurance rates include:
- The type and value of the car you drive
- Whether your vehicle contains special safety features like airbags or an anti-theft alarm
- Whether you have young drivers insured on your policy
- The number of car accidents and traffic violations you have had in recent years
- The number of car insurance claims (even minor ones) you have made in recent years
- The crime rate in your neighborhood
- The number of miles you put on your vehicle each year
- The amount of debt you have
- Your history of paying creditors on time
Keeping Rates Low
Many of these factors, such as your credit history, driver record, and claims history can take many years to improve. During that time, you can shop around for competitive rates from multiple insurers, and you can also take steps to procure additional savings and discounts on coverage. For example, did you know that raising your deductible can lower the upfront costs of your car insurance coverage? Likewise, you may also qualify for a car insurance discount by enrolling in an approved driver safety course. This allows you to learn defensive driving techniques that could prevent a future accident, which in turn reduces the chances that you will need to file a claim. These are the types of steps you can take to lower costs immediately without sacrificing the quality of your coverage.
Other discounts may also be available for:
- Low-mileage drivers
- Students with good grades
- Homeowners who insure their home and auto under the same carrier
- Drivers who insure multiple vehicles under a single policy
When it comes to shopping for car insurance, do not do it alone. It costs you nothing to benefit from the helpful guidance and services of an independent agent here at Ellis Insurance. For more information about saving on car insurance or to request your free quotes, contact our office today. We look forward to serving you soon.