Advice On Keeping Car Insurance Premiums Low

Trying to keep your car insurance premiums from going up can be like playing a game for which no one tells you the rules. One important factor is your credit. Insurance companies will check your credit score, because studies have shown there's a direct relationship between a person's credit score and the odds you would file a claim. If you've had good payment histories on your credit accounts and don't open and close accounts frequently, you present less of risk to the insurer. This is evidence to them that you are dependable and stable. This is a major factor in determining your insurance rate.

Note: Although your auto insurance risk score is not available for you to examine, it will be somewhat like your credit score. If you've had unfavorable activity on your credit score recently, it is best to wait a month or so for things to return to normal before purchasing auto insurance. Another factor in determining your premiums is your car itself. Most auto insurers have a system developed by Car Insurance Services Office that factors age, make and model that begins with the cost of your car and then adds in safety factors and theft statistics. Just like your "insurance risk score" this rating information is not available to the consumer.

Another thing you can do, and frankly you should be doing it anyway, is to avoid accidents on the road. Besides the expenses involved in the accidents themselves, car insurance companies will unflinchingly raise your insurance premiums up if you're proven to be at fault for a recent driving accident. If this has already happened to you, then don't despair. You can still work your way back down to lower premiums, it will just take a long time of driving safely. Avoiding accidents and other traffic altercations will save you money and trouble in every possible way.

In the event of an accident contact your insurance company about its forgiveness policy, if any, and see whether or not you qualify. Some companies have a policy of forgiving each client's first accident. Some companies will forgive the accidents of certain qualified clients. You should also be aware that if a friend, using your car, gets into an accident then you will have to file a claim with your insurer. If your friend is uninsured and causes damage that exceeds your coverage then you may be held liable for damages.

Each auto insurance company figures the worth of a vehicle in a different manner. All of them keep their own lists of car values (like the Blue Book list). Some companies may ask local car dealers what they'd charge for a particular vehicle. Gap insurance might be worth purchasing, as it might pay the difference between what your insurer will pay and what you actually owe. Keep any maintenance records you have, especially of oil changes and routine checks by a qualified mechanic, or special parts, or upgrades. These will be factors in figuring what gap insurance will pay.