Best Deals on Auto Insurance - 2 Reasons You May Have a High Auto Insurance Premium
Best Deals on Auto Insurance - 2 Reasons You May Have a High Auto Insurance Premium
It is a fact. Money is tight. Some of us have overextended ourselves during the good times and now that the recession is in full force, many of us are having a hard time paying our bills. So now is the time to do whatever you can to lessen your financial burden and one simple way is to find the best deals on auto insurance, thus possibly lowering your monthly payment.
Just like all insurances, you hate to pay that monthly car insurance premium but if you are ever in need of it, you are sure glad it is there. Plus each state requires that you carry insurance on your car or else you could pay a hefty fine or have your license revoked. And nobody wants that.
But did you know that each car insurance company has their own set criteria when deciding how much your insurance is going to cost you? The most general guideline that insurance companies look at is what kind of car you drive. And if you want the best deals on auto insurance, then you may want to avoid driving a brand new Mustang GT, which will likely cost you more in monthly premiums, than say a Kia Sportage. And there area couple of reasons for that.
One thing that companies look at is how likely the car is to be stolen. If you car falls on the list of most stolen vehicles, then you will pay a higher monthly premium. Another reason why the type of car you drive matters to your insurance company is that some cars are notorious for being in accidents. These are usually the high performance type sports cars as those who drive these types of automobiles like to drive faster than those who drive other types of cars, thus putting them into a higher number of accident category. So driving a flashy sports car may not be your best option when trying to acquire the best deals on auto insurance.
But even two people of the exact same age driving the exact same car will sometimes pay a different premium depending on things such as their credit score and where they are located. So if you are looking for less expensive auto insurance, you may want to be sure that your credit score is also above average. And the reason that insurance coverage can be more costly for someone with a lower credit score, is that they are felt a higher risk and less responsible than someone whose credit score is in the higher range. Even though this may not be true, this is a criteria commonly used by some auto insurance companies.