Today, perhaps is more expensive is the peace of mind you need when driving on the streets knowing that in the event of an accident, the cost of getting coverage is just exorbitant.
So, what to do to reduce insurance premiums in order to have some peace of mind at least when driving to be able to concentrate enough and reduce the chances of causing an accident? Think of the amount of coverage you need to purchase and how much it will cost you. Factor in comprehensive and collision coverage – what you’ll get in return if your car gets destroyed. If your collision coverage is worth $20,000, and your vehicle’s market value is $10,000, will your insurer reimburse $20,000 for a car worth only $10,000? Never.
If you are on the leasing business, or want to finance your vehicle, such coverages might be mandatory but if you’re driving a vehicle who value has depreciated, you might want to think of saving for your premium by getting rid of this coverage. However, before you take this bold step, ensure you are able to pay the total cost of replacing your car in case it gets lost.
Factor in what it will cost you to insure a luxury or sports car before you go to the shop and buy it. If high premiums aren’t a high price for driving from 0-60 min in only 0.5 seconds, buy that Ferrari but if it is, think of taking a simple sedan. While you cannot help determine where you live, brace yourself to pay a high premium if you live in a locale that has high accident and vandalism rates.
If you could control your aging pace, and if you could get that perfect someone to finally tie the knot and settle down as soon as you can, you would be able to control your auto insurance premium rates but since this is beyond your capabilities, just bear with the high premiums and look for alternatives. Single young men aged 25 are perhaps the worst affected as insurers tend to believe they have high chances of causing accidents. The only way you can lower your premiums in such a situation is to buy a sensible car.
Your driving record is another determinant of insurance premiums. If you have a history of accidents, expect to make up for it in your premiums. This is because insurance companies supplement the money lost on low-risk drivers by charging high-risk drivers highly. As such, drive slowly, get out of the house earlier to avoid accidents, exercise utmost patience and just think of what you will save each year by being faithful to traffic laws.