Insurance Basics: Everything You Need to Know

Want Cheap Car Insurance? How To Save Money Over Time

Everyone is looking to save money on their auto insurance premium. However, not all money-saving tips have an immediate payoff. Some techniques may not see real savings until a few years down the road. Here are some tips that will help you see low premiums over time.

Select The Right Car

A large part of your car insurance premiums is actually based on the kind of car that you drive. If you are in the market for a new car, it is worth considering how expensive the premiums of one kind of car will compare to another.

One factor that car insurance providers look for is if the car is known for being a racing car. To put it simply, an insurance provider is going to assume that the owner of a Porsche is going to want to drive fast, while the owner of a minivan is going to take it easy. While these are extreme examples, it can apply to any vehicle that is known for speed rather than performance.

The cost to replace or repair the vehicle is also considered. Having expensive parts means that if the car is involved in a crash, it will cost more money to have the car repaired. The same can be said if the construction of the car is known for causing more labor to perform repairs, such as needing to remove the engine to access another component of the vehicle.

Some car models are bigger targets of theft, which put you at a higher risk by simply owning the vehicle. If you want to know if the car you're thinking of purchasing is known as a theft target, reach out to your insurance agent.

Be A Safe Driver

One factor that you have some control over is your driving record. It can pay over time to not get speeding tickets or get into accidents, since you may be offered a safe driving discount from your insurance provider. Your car insurance company may offer a vehicle tracking program, which rates your driving and gives you an appropriate discount. These can lead to big savings that will add up over the years.

Maintain A Good Credit Report

Another factor that influences your premiums is your credit history. People that make poor financial decisions are often seen as more risky individuals, which can cause insurance premiums to increase as a result. If you have turned your credit history around, ask your insurance provider to pull your credit report and reassess your premiums.