A car insurance policy is constantly subject to change. When your visit the insurance office at the end of the coverage, you may find that your car insurance rates have been elevated trivially or drastically. Fortunately, such changes do not come unannounced and can be predicted and avoided through a basic understanding of car insurance glossary.
The foremost reason of plummeting car insurance rates is a bad driving record. If you have been into many accidents before, your car insurance policy is going to punish you for it with high premiums. If you get a speeding ticket or are charged for reckless driving, the rates may increase at the time of policy renewal. Any past claims resulting from a bad driving record reflect badly and can continue to disgrace your car insurance policy for as long as five years. A good driving record is your gateway to low insurance premiums. Every time that you feel the urge of speeding on the road, think about the premium increase and your speedometer shall come down. If you trust yourself to be clumsy on the road, choose a policy with low a lower surcharge schedule. Surcharges can increase rates from 10 to 140 percent of the original value.
After driving record and claims history, age and marital status are the most dominant factors in determining the rates of a car insurance policy. Older policy holders (above 25) are assumed to be more road-worthy and are insured for less. Similarly, car insurance policy holders who are married are assumed to drive more responsibly and get into fewer accidents. If you have only a few days left to your 25th birthday or to your wedding, it may be wise to wait a few days before renewing your car insurance policy. However, make sure to stay off the road while uninsured. A car insurance policy is more than just paper and numbers; it is a vital protection force.
The next influencing factor is the car you drive. A car insurance policy tends to favor steadier cars over convertibles and fast small cars. Refer to insurance companies' yearly rankings of most non-profitable cars to insure and choose something that shows way down on the list. Paying a greater insurance deductible shall reduce monthly payments. Maintaining a good credit rating can lower costs by as much as 50 percent. Lastly, absence of theft protection factors like installing a Lo Jack and having a safe garage can inflate rates.
Remember that nearly all increases in rates of a car insurance policy can be controlled by meticulous care. Any increases in the past may be lowered following consistent positive performance and thorough understanding of car insurance glossary.