Many factors are used to calculate the premium or cost of an automobile insurance policy. These range from driving history to your age and discounts that are available. If you want to lower the premium for your automobile insurance, there are many options that are available.
The biggest factor that affects the premium for an automobile policy is driving history. Any accident or ticket within the last three to five years will be included on your driving history. One way to maintain a low-cost for your policy is to eliminate traffic tickets.
The best and easiest way to lower the cost of your insurance policy is to increase the deductible. This is the amount that the policy holder needs to pay when a claim is made. The deductible is reduced when a claim is paid. The standard deductible for a policy is $500. Increasing this amount to $1,000 or a higher will have an effect on the final cost.
Another way to lower the cost of your policy is to apply all available discounts. The discounts you have available will depend on various factors. One discount that is typically applied to a policy is your credit score. A lower score will mean a bigger discount. A second discount can be applied if your vehicle uses an anti-theft device. Contact your insurance company or insurance agent and see if you are receiving all the discounts that are available for your policy. You may have a discount that has not been applied.
The amount that you pay for your policy can also be decreased by lowering the coverage amounts. The amount of coverage you need is based on the type of vehicle being insured.. A newer vehicle requires a full coverage amount on your policy. If you have an older vehicle, consider lowering your collision and comprehensive coverage.