For the past few years we have been experiencing an increase of premiums with regard to insurance policies. I'm sure you have been asking, as I have, why are the ratings rising? One reason is inflation and to that we owe the higher volume of car accidents nationwide. As agents and consumers we have ways to help solve these high rates.
How can we help keep rates low? What factors do we need to consider?
The first thing we need to look at is the driving record. Of course it is always best to have a good driving record. A bad driving record is the number one reason for which insurance companies hike up their rates. When having a poor record, a way to improve it is to take the classes the state provides to lower points on your license. Florida has this type of program so check with your state to see if they do as well.
A second factor to keep in mind is the type of vehicle you are having insured. When buying a vehicle one needs to take into consideration the category the car will fall into and the safety features it has.
A sports car will have higher rates because of the risk of having an accident are supposed to be greater than a car from the family category. In addition insurance companies offer discounts on vehicles have safety features such as anti-lock brakes, airbags, alarm, etc. So it is a good choice to have these types of features in your car so that your policy premium can be lowered.
A third way to lower premiums is to have a policy with no lapse in it. Renewing on time and avoiding cancellations, due to lack of payment or otherwise, will help you because at renewal a discount may apply.
The final factor I will mention is the credit check companies now run to find out if you have had a previous lawsuit against an insurance company. There has been a rapidly growing amount of lawsuits against insurance companies from attorneys. If in fact you have had a lawsuit against an insurance company the policy premium might be raised due to a higher risk perceived by the insuring company.
Knowing all of these factors we may now feel more educated when we buy our car insurance.