How To Lower Your Auto Insurance Premium


If own a car, it is your responsibility not just to properly maintain the auto to ensure its roadworthiness condition, but you also need to duly have it registered annually and get the proper auto insurance for it to get sufficient protection.  After all, insurance is a form of risk free management wherein you get financial protection on a particular type of coverage for a certain amount of fee.

Insurance fees, including auto insurance fees can vary from person to person.  Even if both individuals have the same type of auto and are getting the same type of auto insurance coverage, their fees will differ depending on the risk the insurer is taking when insuring the individual.  Most likely, the person whom the auto insurer considers as high risk, possibly due to his police and vehicular incident records, will be the one who will be paying a much higher auto insurance premium.

The truth is that if a person has bad credit score and/or have incurred a number of driving incidents within just the past year, such as being convicted of driving under the influence of alcohol, involvement in road accidents, and simply an overall bad driving record, it is even possible the insurer may not issue that person with auto insurance policy as they are simply of significant risk of loss for the insurer.  Even if an insurer agrees and reconsiders providing that individual with auto insurance, there is no doubt that the premium they need to pay will be insurmountably high as compared to those with good driving records.

If you are a regular Joe and you have an automobile that you love to drive regularly, but not as often and as far to cover long distances, if you have a good driving record and have never been in any vehicular incident within the past five years, then you have a good chance of lowering your car insurance premium.

We all know that shopping around for the best car insurance quote offered is the best way to get a low premium on your car insurance.  However, if you have a good credit score standing, there is a chance that your auto insurer will safely assume that you are not risky to insure.  After all, individuals with good credit score ratings are considered by many as being responsible and have a high standard and value over integrity and self-preservation, which they will most likely intend to keep.

Aside from having a good credit score, if you only run very low mileage on your car (or that particular car you are insuring) you can ask for a low mileage discount from your insurer.  If you drive less than 7500 miles per year on that car, then you are eligible and certainly qualify for the discount.

What Makes Insurance An Important Investment

If you consider something very important to you, say your health, your profession, your home, your business, your life, and many other assets that you consider invaluable to you, the best protection you can get for whatever things you consider important is insurance.  By having the things precious to you insured, you will be able to deal with loss or damage effectively as your insurer will compensate you with claims based on the value of what has been insured in relation to the premium you have paid the insurer for the coverage protection.

You can never really negate the overall importance of insurance.  Insurance importance must always be considered, especially on those things that are valuable to you.  While most people are familiar with home insurance, life insurance, health insurance, auto insurance, business insurance, and liability insurance, there are other categories that do not necessarily fall under those that can be insured.  These are special case type of insurances and their purpose is to provide insurance protection to those who are seeking to having something important and invaluable to them insured.

Take for example world-class professional football players who are highly valued for their football skills.  Since their main assets in their profession are their legs and feet, there are some professional football players who actually insured their legs and/or their feet as a means of protecting their livelihood.  If they have insurance, should they succumb to serious feet or leg injury, with the root cause of the injury properly within the context of the insurance coverage, then they will properly compensated by the insurer with claims that is within the policy of the insurance purchased.

The truth is that you can never underestimate how important having insurance is.  This is because if you get caught in an incident, mishap, loss, or damage, you surely would not want to be caught at a time where you do not have insurance for it.  Sometimes, even just the failure to renew insurance coverage for a few days may have dire consequences as the insurer is not liable to pay claims when an insurance policy has expired, even though the reasons for the occurrence are within the confines of the now-expired insurance coverage.