A Look at What Can Affect Your Premium in West Virginia.
How do you get the lowest car insurance premium? Let’s start with what an insurance premium is – simply put, it’s the price you’ll pay to stay insured. You may have a monthly, quarterly, or yearly premium that has to be paid in order to keep your policy effective and current. Miss paying your premium and you’ll be putting yourself at risk of not being covered.
So what determines how much you pay? Insurance companies take several things in consideration when they determine how much they’ll require you to pay. Knowing what they’re looking for can help you keep your insurance premiums as low as possible.
What Type of Car Are You Insuring?
Consider your vehicle. A car with a higher safety rating will get you closer to the lowest car insurance premium. With automatic seat belts and airbags, should there be an accident, it’s much less likely your passengers will be injured. Things like traction control and antilock brakes can help prevent accidents. And cars that are more likely to be stolen may carry a higher cost to insure.
What About Your Driving Record?
Tickets and accidents will negatively effect your insurance premiums. The most citations and fender benders on your record, the more the insurance company will require in order to cover you while on the road. While it varies from state to state, a ticket can stay on your record for years and a DUI infraction for even longer than that. Be a safe driver, avoid accidents and tickets and never drive under the influence.
How Much Do You Drive Your Car?
The more you drive your car, the longer it’s on the road. The longer your car is on the road, the higher liklihood that you could be the victim of an auto accident. Obviously living closer to where you work and having a shorter commute would be ideal, but this may be one factor you can’t control. However, it’s beneficial to keep in mind when receiving an insurance quote. Driving less can get you one step closer to the lowest car insurance premium.
Your Age and Driving Experience Are Factors.
Most insurance companies will require a higher premium for a less experienced driver, especially under the age of 25. Statistically speaking, drivers under the age of 25 are more likely to be involved in a car crash. While there is no definite rule that after the age of 25 you’ll receive a deduction in your premium, most companies begin to offer a discounted rate after this age. Some start as early as the age of 21 while others discount premiums around age 30. Hang tight. Those birthdays may just start paying off.
Why Does Your Credit Score Matter?
Why do insurance companies use your credit score to determine your premium? According to an independent study conducted by the Federal Trade Commission, credit-based insurance scores are a good predictor of risk involved in insuring individuals. Keeping a higher credit score can really help you save money on your premiums, and even land you the lowest car insurance premium. If your score is low, take heart. One indicator used to determine your score is the length of your credit history. Also, paying your bills on time consistently will make a huge positive impact on your scores.
While you may not be able to control or correct everything that’s affecting your insurance premium right now, this list should give you a better idea and understanding of what the insurance companies are looking at when determining your cost and how to lower your cost. The longer you drive without accidents and tickets, the more experienced you are, the safer your vehicle, and the better your credit, the lower your insurance premiums will ultimately be. If you have any questions, reach out to us. We’re happy to help you understand your insurance and pick the right coverage for you and your family.
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