Before you purchase car insurance, take time to research your options. You’ll learn about discounts and rates that vary based on your driving record. The Consumer Federation of America has analyzed data from previous insurance companies and high-risk drivers to determine what factors may affect your rates. Then you can choose the best policy for your needs.
Rates based on driving record
You can lower your car insurance rates by forty percent or more by maintaining a clean driving record. However, you may be charged a higher premium if you have accidents or have traffic violations. Insurers also take your driving record into consideration if you want to qualify for a safe driver discount. You may also qualify for a lower rate if you have not had any accidents in the last five years. The age of the driver also plays a role in determining the cost of insurance. Younger drivers may be less expensive than older drivers.
If you’ve been involved in an accident or have a history of speeding or hitting stop signs, your insurance rates will rise. In fact, your insurance company might drop you altogether if you have a poor driving history. Therefore, it’s important to avoid speeding or driving under the influence of alcohol.
Speeding tickets are another major factor in raising your insurance rate. Speeding tickets are likely to increase your premium by a couple of hundred dollars each year. The percentage of increase will vary from company to company. Some companies will increase your premium by up to thirty percent. Changing insurance providers may save you a considerable amount of money. It’s best to research your options and read online reviews.
Another factor that impacts your auto insurance premiums is the age and make of your vehicle. In some states, the higher the vehicle value, the more you’ll pay for coverage. Moreover, driving a large distance may increase your premiums.
Discounts offered
There are a number of discounts offered on car insurance quotes. Some are automatic, while others must be applied on a case-by-case basis. The amount of discount varies from company to company, but a few of them can save you a considerable amount of money. It’s worth shopping around before you make a decision, since some discounts are better than others.
Those who have been a good driver are more likely to be eligible for discounts. For example, if you’ve never had a traffic ticket or filed a claim in the past three years, you may qualify for a good-driver discount. Most companies automatically apply this discount for good drivers.
Some insurers also offer discounts for certain occupations. However, they don’t specify which ones. Other companies partner with certain organizations to offer discounts to their customers. For example, Geico offers a minor discount for members of more than 500 organizations. Another insurance company offers a discount for not drinking alcohol. However, there are only a few insurers that offer a no-drink discount.
Another good way to save money on car insurance is to purchase an anti-lock braking system. Most insurers require that vehicles have this system, and they usually automatically apply the discount when you get the quote. These discounts can save you between 5% and 10% on your premiums, which translates to savings of $20 to $100 per year.
Your driving record
Your driving record affects your car insurance quotes in a variety of ways. Insurers will examine your record when you apply for a new policy and when you renew an existing policy. Any changes to your driving record may result in an increase in rates at renewal time. Bad violations can even result in your insurer dropping you from the policy.
Fortunately, there are several things you can do to keep your record clean and protect your rates. First, drive safely. Accidents and speeding tickets can increase your car insurance rates by up to three5%. The cost of getting an accident can be as low as $422, but a DUI can cost as much as $723.
A clean driving record can also lead to lower car insurance rates. Insurance companies will consider your history of minor traffic violations and major accidents, as well as your driving under the influence. Having a clean driving record also improves your job prospects. Some employers take a look at your driving history and base their hiring decisions on this. If they do, they will inform you during the application process. If they find out you have a blemish on your driving record, they may not want you for the position.
Most states have a three to five-year look-back period for driving violations. However, this period can vary depending on the severity of the violation. For example, a minor traffic violation may only stay on your record for three years, while a serious traffic violation may remain on your record for up to ten years.