Dozens of factors go into the calculation of your insurance premium, including everything from your credit rating to where you park your car each night. Adjustments in just a few of these factors can have a significant impact on your monthly premium. As the second article in our auto insurance series, AutoExtra.com offers a quick tutorial on some simple steps that may help reduce your insurance costs.
 1. Your Car Matters
The vehicle you drive each day has a lot to do with your insurance costs. The sticker price, safety and reliability history, anti-theft components, and cost to repair will all factor into the calculation of your premium. Safety features such as anti-lock brakes, front- and side-impact airbags, and daytime running lights can all lower your insurance costs. A car alarm, keyless entry feature, or other theft protection device may also be a factor.
 2. Shop Around
Most insurance providers are now online and offer free quotes on a premium. Getting a quote online usually takes about 8 to 10 minutes and is a fairly simple process. Apply for quotes from multiple insurance providers to get a good estimate of what your monthly premium will cost. AutoExtra.com has partnered with several insurance providers that offer free quotes with competitive prices. But don’t just look at the price – keep in mind not all insurers offer the same protections (see our article on the components of your insurance). The key is getting the maximum level of coverage and service you need at the lowest price.
 3. Try Different Deductibles
If you are trying to reduce your monthly payments, consider a higher deductible on your coverage. According to the Insurance Information Institute, increasing a deductible just a few hundred dollars can impact your premium as much as 30%. Keep in mind that higher deductibles can be risky for both vehicle damage and liability. Apply for multiple quotes and submit a variety of deductibles to find the best fit for you.
4. Check Your Credit
Your credit rating is a factor in determining your insurance risk and can affect your premium. Several web services offer free trial programs to check and consistently monitor your credit score, (including TrueCredit, a trusted AutoExtra.com partner). You may find there are just a few simple steps you can take that will boost your rating considerably.
5. Ask About Discounts
You may have wondered why insurance applications can be so lengthy. Some ask you to fill out information seemingly unrelated to your driving record, but often longer applications include extra discounts in which you might be eligible. Don’t be shy in asking about these discounts with your insurer and how you can qualify. Here is a list of just a few, though availability will vary by state and provider:
 - If you have recently taken a driver training or safety class
 - If you have no accidents in the last 3 years
 - If you have no moving violations in the last 3 years
 - If you are over a certain age
 - If you are a student with good grades
 - If you are a college student away from home
 - If you park in a garage each night
 - If you drive less than a certain number of miles annually
 - If you have been with the same insurer for a certain number of years
 - If you have multiple vehicles or family members insured with the same provider
 - If your homeowner’s insurance is with the same provider
Later in our auto insurance series we will cover other aspects of the auto insurance world – including how to file a claim and what you should do when involved in an accident.
Please remember that AutoExtra.com provides no guarantees regarding the accuracy of the information as the structure and content of auto insurance policies periodically change. Consult your insurance provider before deciding on a policy.Â
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March 30, 2007 at 5:07 pm
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March 30, 2007 at 6:29 pm
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April 1, 2007 at 12:02 pm
[...] David Thomas wrote an interesting post today onHere’s a quick excerptDozens of factors go into the calculation of your insurance premium, including everything from your credit rating to where you park your car each night. Adjustments in just a few of these factors can have a significant impact on your … [...]
April 10, 2007 at 3:45 pm
Its hard to believe but if you are going to pay for your insurance by monthly payments, some insurers charge upto 35% APR! Therefore its actually cheaper to make a one of payment and put on your credit card, an average of 15.9%!
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April 30, 2007 at 6:29 am
If you’re a young man and married, you’ll pay less on your car insurance, than if you’re single man. At least, that was the case with a coworker the same age as me with an identicle vehicle and the same insurance carrier. He was married and he payed less.
July 19, 2007 at 12:13 am
Car Insurance Rates Continue to Drop
Insurance.com, America’s biggest online auto insurance agency, in its most recent report, said that car insurance rates continue to decrease depending on the geographical location. The company’s “2007 Mid-Year Auto Insurance Pricing Report” shows a n…