Does the kind of vehicle I drive affect my auto insurance premium?
Yes. Insurance companies often set their auto insurance premiums based on their past experience with a particular vehicle. For example, if a particular kind of vehicle has more thefts or collisions, or even poor safety ratings, it may cost more to insure. Also taken into consideration is the replacement cost of the vehicle. Your age, gender, driving record, credit score, and where you live can also affect your auto insurance premium. Rates can vary greatly from company to company, so be sure to shop around!
How can I lower my auto insurance premium?
The good thing about auto insurance is there are several things you can do to lower your premium. Some things that may lower your auto insurance premium include:
- Keep your mileage down.
- Take a defensive driving course.
- Insure your home and auto through the same place for a multipolicy discount.
- Increase your deductibles.
- Be a good driver—accidents and moving violations increase premiums.
- Be a good student—honor roll students may be rewarded with a discount.
- Maintain a good credit score.
- Review your coverage periodically.
- Consider dropping comprehensive coverage on older vehicles.
- New drivers that have taken a driver training course may receive a discount.