Five Surefire Ways to Increase Car Insurance Premiums

Owning an automobile can be expensive. Aside from monthly car payments, automobile owners must be able to afford gasoline, maintenance, and auto insurance. The cost of auto insurance varies for each person. Persons with older vehicles and a good driving record may incur a small expense. On the other hand, if you drive carelessly and have received numerous traffic violations, your monthly auto insurance may exceed $200. Adopting good driving habits is necessary for lowering insurance premiums. Yet, some people have not made this connection. Consider the top five reasons that contribute to high monthly premiums.

• Choosing a Low Deductible: Before an insurance company will cover the cost of an auto accident, the driver must pay a deductible. Deductible amounts vary. On average, drivers can choose either a $250 or $500 deductible. Naturally, drivers are more inclined to choose a policy with a cheaper deductible. However, there are advantages to paying a higher amount. For starters, paying the higher deductible will save you money. If your driving record is horrible, and you are already paying considerably more for an auto policy, choosing a $500 deductible could save you $50 to $75 a month.

• Add a Teenager or New Driver: When a teenager reaches the age of 16 and acquires a driver's license, many parents consider adding the child to their auto policy. This decision is advantageous for the driver, but does not benefit the parent. If the teenager attempted to receive his or her own policy, they would probably be unable to afford coverage. On average, teenagers and new drivers receive higher auto insurance quotes. On the flip side, the teenager will save money if insured under their parent's policy. Yet, parents can expect a monthly increase.

• Buy an Expensive Car: Monthly auto insurance premiums are based on a vehicle's worth. For this matter, if you purchase an older car, premiums are low. On the other hand, if you choose to buy the most expensive vehicle on the lot, with a lot of extra accessories and features, your auto premiums will be higher. Additionally, sports cars have higher premiums because these cars are usually driven at a faster speed, which increases the risk of accidents.

• Multiple Accidents and Traffic Violations: Auto insurance companies recognize that accidents and moving traffic violations will occur. Thus, insurance premiums will not greatly increase from a single mishap. On the contrary, if you have several moving traffic violations or involved in many accidents, your insurance company will likely increase your premium, or refuse to renew the policy. Once dropped from an insurance company, acquiring affordable coverage with another company may be difficult.

• Failing to Shop Around: When shopping for an insurance company, comparing quotes is critical. Each insurance company has different criteria for establishing premiums. Larger companies such as Allstate and Nationwide offer great services, but they also have higher premiums. On the other hand, smaller, privately owned insurance companies offer the same great coverage for a fraction of the cost. Shop around. Whenever possible, request online quotes from multiple companies. Periodically review your driving record and attempt to receive a lower premium.