Many drivers are unsure why they’re paying so much for their insurance premiums. They can’t figure out why some people seem to pay next to nothing, while they’re paying an arm and a leg for their insurance.
The answer here involves your actions and if insurance companies see you as a risk. Keeping a low profile and showing that you are a responsible driver is the best way to keep your rates low and pay less money. Here are the best ways to keep your insurance rates down and save money.
One of the most common reasons why insurance rates go up is because the person was in an accident. Depending on the severity of the accident, you could simply have a fender bender or, on the more serious side, you could potentially suffer a personal injury, costing you money due to increased insurance rates, time lost from work, and hired legal representation.
When you get into an accident, your insurance company sees that you are a liability, increasing the amount that you pay for your premium. If you are someone that is seen as a higher risk, you should expect to pay more for insurance.
Don’t Drink And Drive
Aside from the danger that you could bring upon yourself and others by drinking and driving, getting a DUI is awful for your record and for your insurance rates. You can expect a huge increase in what you pay for insurance if you have a DUI on your record.
The best way to avoid getting a DUI is to take a cab or arrange for a designated driver. Otherwise, you run a huge risk that, quite simply, isn’t worth the potential consequences. A taxi ride is much more expensive than the legal ramifications and increased insurance rates following a DUI.
Look Out For Deals
Instead of settling for the first insurance policy that you see, why not shop around and get the best insurance rates out there? Sometimes you can qualify for extremely cheap insurance that you didn’t even realize was available to you!
USAA is an example of an insurance company that offers extremely low rates for people in the military and their families. If you have a family member that is in the military, then you may be able to qualify. Make sure that you look into all of the possibilities that are out there before you settle for a price that may be way more than what you need to pay.