There are many ways of achieving cheap car insurance rates. It is not practical to explain all of them at once but there are many articles on this subject within the website. Perhaps we should go through them in summary here quickly and concentrate on the discounts offered based on the automobiles insured.
Discounts Offered for Drivers: Personal circumstances play a key role in auto insurance calculations. Age, Gender, Education, Occupation, home address and credit score are some of those factors considered. On the other hand, economic position of motorists would affect other factors as well. A well off motorist can invest in a safer automobile while a driver with tight budget may struggle to even maintain the car owned currently.
Savings Based on Driving History: Many vehicle insurance companies offer the largest discounts to drivers with no claims and traffic violations up to five years. Companies look for proofs to justify the savings. Managing to stay trouble free for a while is a good indication of the risk levels. Good drivers have many choices from companies to policies because quite a few packages marketed target them. When you have a few claims and traffic violations in recent years you may find that some companies may not even offer a quote at all.
Savings Qualified Due to Ways Vehicles Insured
The autos insured is another key factor in the way rates are set. Particularly, collision and comprehensive coverage pays for damages to insured cars. Therefore the premiums will be directly correlated with the price of them. Depending on the car owned policyholders can save money or pay extra premiums. Here are some saving opportunities.
Buying Safer Cars: Insurers like every additional feature that will reduce claim payments. Especially injury claims can amount to large sums. When a vehicle is designed to reduce such injuries and damages to properties they deserve savings. Besides, safer cars protect the family members better. So, you can invest a little for extra piece of mind and get some of that money back with premium discounts.
Multicar policies: Policyholders with several automobiles can take advantage of multi-car discounts. Having them covered under one policy can have several advantages including less administration. The idea behind a good discount is that you will only drive one of them at a time. All the cars in the policy do not have to be owned by one person as long as they are owned by family members residing in the same address.
Installing Anti-theft Devices: This could make a real difference when insuring expensive automobiles. The high end cars are always targets of thieves that installing tracking devices, immobilisers and alarm systems on them can save money. Some companies may refuse to insure them if such devices are not installed.
Insuring up to Current Market Value: Autos lose value pretty fast especially in the first year. Considering the changes in the technology most people like to buy newer cars. And older automobiles start becoming trouble after a while with mechanical breakdowns. There is no point insuring a vehicle at a price you paid a few years ago because companies would only pay open market value when it is totalled. So, every so often have a check its current market value and reduce insurance accordingly.
Drop Coverage for Older Cars: Furthermore, it may be better dropping coverage entirely for older vehicles. After deductibles you may not receive much for it. In fact, the savings you get by dropping coverage may be more than what you will receive if they were totalled. Furthermore, you would save the hassle of filling claim forms or losing your no claim bonus.
Challenges with Insuring Different Types of Vehicles
Smaller Cars: Many people may think that insuring smaller cars must be cheaper. However, those cars do not stand well in accidents. And they are easy pickings for thieves and tugs due to lower specification security features. Keep this in mind if you are buying them only because you think it is cheaper to insure them.
Sports Cars: Engine size, potential speed and price of them make insuring them expensive. When you have a good driving history premiums may still be alright. However, it could be horrendous to insure them when you have a bad driving history or you are young. Having high end security on executive and expensive sports cars will reduce the costs. Satellite Vehicle Tracking, alarms and immobilisers may be required by most companies anyway.
Sports Utility Vehicles (SVUs): From its appearance many people may feel safer with these autos. However, they are known to cause more injuries especially to passengers and drivers of other cars in an accident. They are not great in handling curves as well. Overall, you should think twice if you believe you are safer in them and you will get lower premiums.
Classic Cars: A well maintained classic autos can really be valuable. The price of them can vary hugely depending on their conditions. Therefore, it is essential that these vehicles are valued properly before getting insured. And the insurer agrees to pay that valuation should it be totalled. Otherwise, there could be serious disputes as to how much will be paid for claims. Also, these cars are not usually driven every day. This should be made clear to the company as rates will be cheaper based on mileage.
Hybrid Cars: Although some companies offer savings for some of the environmentally friendly vehicles there are some safety issues concerning underwriters. One of them is that some models are far too quiet for bikers and pedestrian to notice them coming. These issues may be addressed with artificial sounds on the new models. So, the costs depend on models.
It is also worth mentioning that regardless of your background, driving history or the type of vehicle you own you can save money by shopping around for the best auto insurance quotes. Every underwriter looks at risk differently and comes up with their rates. You may be perfect candidate for one company to insure while the other will scorn on your quote application.
A very good example is that some companies base their premiums mainly on driving history. However, quite a few others look at what type of a person you are, what your income and credit score is before they can offer you the best rates. Therefore, it is in your best interest to go through your options at every renewal even your current insurer has been coming on top in the last few years. Things change.