Top 3 Reasons You are Paying too Much for Your Auto Premiums

If you think you may be paying too much for your car insurance — you’re probably right. Is it time to shop around for a better rate? There are many reasons people shell out too much for their monthly premiums. In the following post, we will discuss the top three reasons why people are “stuck” paying too much for their auto insurance premiums (and we’ll tell you how to get “un-stuck”, too).

Reason #1 – Your Car

Most drivers already know that faster cars are more costly to insure. However, many people who drive high-performance cars don’t realize that they are paying considerably more for their insurance. In addition, many drivers are unaware that if they are driving a vehicle with aftermarket parts, they will pay higher insurance premiums for these features, as well.

WAYS TO SAVE: If you garage your vehicle (or drive it less), it could help to save money on insurance. Installing an anti-theft system into your high-performance vehicle or sports car may result in reduced rates, as well.

Reason #2 – Your Driving Record

Did you know that having just ONE speeding ticket can affect your insurance premiums for several years (up to five), after the fact? By the time the ticket is removed from your record — it could cost you thousands more than, if you had never received a ticket.

WAYS TO SAVE: The best way to save yourself from paying higher insurance rates is to avoid getting a ticket in the first place. However, if you do receive a traffic ticket, moving violation or other form of written reprimand from law enforcement about your driving– you might want to consider hiring an attorney. This is especially true if the ticket was related to a DUI, DWI or OWI because these charges can place you in a high-risk insurance category, which is the most expensive kind of car insurance you can get. It never pays to drink and drive, so try to avoid it – for your sake and for the sake of cheaper insurance. 

Reason #3 – Your Teenage Driver

Teens are commonly know as, the most costly group to insure, particularly teen males. If you have a teenage driver, you are probably already aware that your insurance has gone through the roof.

WAYS TO SAVE: Check out discounts offered through your current insurance provider. Your insurance company may offer Good Student Discounts, Safe Driving Course Discounts, Driver’s Education Discounts and more to reward responsible behaviors.

How can I get cheaper rates?

The best method to lower your car insurance premiums is to shop around for the best deal. Another common reason for paying to much for car insurance is that people stay loyal and true to their insurance company. While there are discounts for loyalty — without checking the rates of other companies, you could also be paying considerably more for your insurance. Even if your rates with your current insurance company were the lowest, five years ago — a lot can change and it never hurts to “re-evaluate” your insurance needs by comparing rates and plans through other providers.

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