Auto Owners Insurance - Surprising Factors Affecting Your Premium

When shopping for insurance, you may surprised on the factors that affect your premium. Before settling on any insurance company, shop around.  Review many companie and see what the market holds.  There are many factors that affect your premium, so make an informed decision. Some of the key factors that can have a surprising impact on your auto owners insurance premium are:

Your Deductibles

Increasing your deductible will help bring down your auto insurance rate. For example, deductibles of $1000 can have an impact of almost 25% on your policy rate.  The lower the deductible, the better the monthly payment, so consider increasing the deductible for a significant savings.

Absorb Fender Bender

May drivers will have light collisions, or a fender benders.  Repairing costs for such incidents can be inexpensive,  but most people will go back to their insurance companies and ask them to pay for it.  However, the accident will result in an increase of auto insurance rates for the following term.  You should be aware that if you spend a little money on the your own, without involving the insurance company, you may end up saving money on premium rates.

Collision and Comprehensive Insurance on Old Car

If a vehicle is more than 10 years old, it may be a good idea to omit collision and comprehensive insurance.  It would be futile to pay for collision and comprehensive insurance because the depreciated amount of the card plus the cost of the repairs can be higher than the actual value of the car itself. It would make a lot of more sense just to sell the car under such circumstances and purchase a newer, more reliable vehicle for which  collision and comprehensive insurance would therefore be necessary.

These are a few of the factors that can directly impact your premium.  The most important thing to keep in mind regarding auto owners insurance is to always be on  the lookout - for better deals, cost-effective strategies and more information.  New state regulations and competition amongst the insurance companies themselves can change premiums, so be informed of new changes.
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