How Can I Reduce my Insurance Rates?
Posted Tuesday, May 09, 2017 by Ed Harper
How can I reduce my insurance rates and will the rates go up after an accident?
Well it depends. There are several factors that an insurance company will consider when determining what your car insurance rates will be, and whether they will go up, if it all, after an accident.
First of all, it is personal as the insurance company will look at the risk they are exposed to. When setting rates, an insurance company will be ascertaining personal information including your age, occupation and where you live. Further, your occupation can determine how much driving you do. Additionally, this will include things like what type of car you drive and where you live.
Actuaries help ascertain a drivers tendencies. They look for patterns of claims activity. They can also look at your credit score. The reason they these studies is to show that a person who can manage their financial affairs often is a predictor of the number and size of insurance claims he or she may file according to the Insurance Information Institute.
Secondly, insurance companies will determine rates based on the car you drive. Premiums are often based on the car’s sticker price, the cost to repair it, and its overall safety record and likelihood of theft. It should be obvious that a Ferrari would be a lot more expensive to repair than say a Nissan.
Other important factors are finding out your driving history, as well as your accident and ticket history. Safer driving in the past often informs the insurance company that you will be a safer driver and less likely to file a claim.
If you’ve been in an accident, they will look at the severity of the accident and the size of any claims made. Often time rates will increase if the accident is your fault, but stay the same if the other driver is at fault. However, exceptions can apply.
Additionally another way that insurance companies determine insurance rates results directly from the coverages you are applying for. Raising your deductible to an amount such as $1000.00, could save you 25% to 50% on your policy. Providing a higher deductible is self – insurance and can reduce your premiums.
Additionally, you can help lower your premiums by being and becoming a better driver. Just driving in a safe and calm manner can reduce the number of tickets you will receive and you will likely also save money in fuel costs.
You can also take a safe driving course or in accident avoidance course and consider asking your insurance company if this will reduce your premiums.You can also get a cheaper, lower risk vehicle for reasons mentioned above. Edmunds.com has considered 8 components –
• Depreciation • interest on financing • taxes and fees • insurance premiums • fuel• maintenance• repairs • federal tax credit that may be available
These 8 items will tell you what your cost for this vehicle would be over 5 years. You can also get a preview of what your insurance premiums will be by asking when you are car shopping on how much different vehicles will affect your insurance.
And finally, when all else fails consider switching insurance companies to obtain a discount for the same policy coverages. Don’t switch and fall prey to 15 minutes can save you 15% claims, if all the insurance company is doing is reducing your coverages. Be thorough and review your policy and call Ed Harper at 425 – 284 – 3333 Harper Law PLLC if you have questions regarding your auto insurance policy.
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