Is Your Insurance Premium Too High? Here’s What to Do

Insurers consider the type of vehicle you drive when calculating your premium. The model, year and engine size of your car affect the cost to insure it, as do its safety ratings and the likelihood that it will be stolen. Choosing an affordable, safe vehicle can help lower your insurance rates.

In addition, your occupation and claims history may affect your auto insurance rates. For example, people in certain professions such as truck drivers, police officers and paramedics are more likely to file insurance claims than others, so insurers often charge them higher rates.

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Other factors that influence your premium include where you live and how much you drive. Urban drivers generally pay more for car insurance due to higher rates of theft and vandalism, while rural drivers tend to see lower premiums. And the distance you commute to work can also affect your rate, as does parking your vehicle in a garage vs. on the street.

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Other variables that can affect your auto policy include the number of speeding tickets you have received and the number of times you have filed a claim, even if it wasn’t your fault. Additionally, raising your deductibles can reduce your monthly insurance payments by decreasing the amount of money the insurer is expected to pay on a claim.

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The Area You Live In

When calculating an insurance premium, your location is a key factor. People who live in areas prone to natural disasters or with higher crime rates often pay more for car and home insurance. This is because insurers assess the risks of accidents, burglaries and other claims based on data from your specific area.

The size of your neighborhood also plays a role. For example, if you live in a densely populated city with high theft and vandalism rates, your premium will likely be more expensive than if you lived in a rural area with low crime rates and no flood zones. The number of cars on the road and the amount of traffic will also impact your rates.

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Aside from your location, the type of policy you choose will also affect your rates. For example, permanent life insurance policies typically have higher premiums than term life insurance because they provide lifetime coverage whereas term life only covers you for a specified period of time.

The factors that influence your insurance premium are numerous, and the best way to save money is by shopping around for quotes and comparing options. In addition, it is important to review your credit report regularly for errors.

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