Thinking as an insurance agent can help you reduce the cost of your insurance premium, and to do this you must think about the following:
- Drive a cheap vehicle: Driving a new vehicle will only make you need the most expensive insurance policy to cover any eventuality with your vehicle.
- Be the owner of your vehicle: If the car is not yours, you cannot decide which insurance policy is best for you. If you drive or rent a car that is not yours, the owner of the vehicle will want to guarantee that if something happens, someone will be responsible for their car, so you could be required to have good insurance.
- Never buy a full-risk insurance policy: There are two types of insurance for vehicles, liability and full-risk. One covers the damage you do to another vehicle, property, or person. The others type cover everything else. The only thing you must remember to lower the cost of your insurance is to NEVER buy a full-risk policy.
- Choose the minimum coverage and the highest possible deductible: The only way to level the game with the insurance company is to choose the minimum coverage plan and the highest possible deductible. Purchase the minimum coverage insurance policy that the state where you live permits and check that your health insurance policy covers car accidents (usually they do).
- Drive less frequently and lower your annual mileage: One of the factors that the insurer considers is how much you drive because when you are not behind the wheel, you are not a risk to the insurance company. Anything you can do to reduce the miles you travel each year will decrease the risk of your car insurance and therefore the insurance premium.
- Improve your creditworthiness: Did you know that insurance companies can predict your chances of causing a traffic accident when they see your creditworthiness? People with high credit scores are less likely to cause an accident because they are more careful drivers. People who have a higher credit score tend to be more careful with their money. The word “careful” is the operative word in this case and insurance companies will pay more attention to your creditworthiness.
- Request that the citations be removed from your file: When you have an infraction, make sure that the court removes the citation from your file so that it does not affect the insurance policy of your car.
- Take a defensive driving class: By taking a defensive driving class you will not only prove that you want to learn to be a responsible driver, but you are already more responsible than an irresponsible driver would never think about taking the class.
- Buy a better rate every year: This tactic could help you save more than all the other tactics together if you remember to apply for it every year. Insurance companies know that the longer you maintain a relationship with them, the more willing you are to pay for the convenience of not having to look for another insurance company, so they slowly increase your insurance policy over time. Remember to compare at least three suppliers every year so that you can see where and how you can save money.
- Pay in advance as much as possible on your policy: You will get a better rate on your insurance by paying as much of your premium in advance as possible, usually as early as six months. One of the rules that risk agents have is that if you cannot pay for at least six months of your insurance policy, then you cannot afford your car.
- Ask for any possible discounts: All insurance companies have a list of discounts that you could qualify for that may not be made publicity. Some could be a discount for your occupation; a membership discount; a discount for statements without paperwork; a discount for being part of the Armed Forces; a discount for parking in a parking lot; a anti-theft discount; good student discount; and many others.
- Get married: People who are married tend to be responsible adults and therefore insurance companies prefer them and when they have children, they tend to drive with greater responsibility than those who are not married and do not have children.
- Do not drive until you are at least 25 years of age: Statistically speaking, if you are under 25 years of age you could be an irresponsible and immature driver and are more likely to cause an accident. If you can drive after the age of 25, you could enjoy lower rates from insurance companies.
- Move to a rural area: Living on the outskirts of a city will make it less likely for you to crash your vehicle into another. Remember that the rates that insurers use are based mostly on statistics of the population.
- Buy a house: Another indicator that you are a responsible person is that you own a home. Insurers enjoy these people because they become good customers. This happens because buying a house is a sign of financial success and therefore you will be responsible enough not to crash your vehicle.
Remember these tactics to reduce or improve the cost of your insurance policy in your favor.