While auto insurance might be something you have to have, depending on your state, it’s also something you want to get the best price for without compromising on the overall quality of your coverage. If you’ve noticed the premiums on your Columbus auto insurance premiums are steadily increasing, there are several reasons why. Knowing just what those reasons are can help you work with your insurance agent to get a better deal and maintain the same coverage.
You’re a Renter
One reason for your increased premiums is that you aren’t a homeowner, but this isn’t true across all insurance carriers. It’s not uncommon for renters to pay as much as six percent more for coverage, so you’ll want to ask your agent outright if you pay more for coverage because you rent your home instead of own one.
You’re Single
Besides renting, you might also be unmarried, something else that can cost you more in insurance premiums. One reason for this is the belief that policyholders who are married drive more carefully because of the fact that they might have their children in the car with them. While this might not necessarily be true in every instance, it is something that can drive up the price of your coverage. Usually, it’s single drivers in their 20s who see the biggest increase in their premiums.
Your Car Didn’t Perform Well in Crash Tests
The next time you’re in the market for a new car, do yourself and your insurance costs a favor and research how well the car models you’re considering performed during crash tests. Those that don’t are often considered a safety as well as a financial risk for insurance companies, which is understandable. Even if you didn’t have to worry about higher insurance, it’s still a good idea to opt for car models that can better withstand a crash.
You’re a Young Driver
Young, less-experienced drivers, those under the age of 25, are also seen as a risk to insurance companies, which leads to higher premiums. Even if a young driver makes every effort to stay safe while behind the wheel, he or she can still pay roughly 50 percent more for premiums until she or he reaches the age of 25.
You Have a Long Commute
Long drives to and from work can drain your patience levels as well as your bank account due to high premiums. The reason for higher premiums is because of the higher risk associated with being on the road for a lengthy period of time, which makes sense. Someone who drives 15 minutes to work in the suburbs is unlikely to encounter the same number of risks as someone who drives 45 minutes on the interstate to work. Carpooling, working from home for a few days or taking public transportation instead could help drive down the cost of your coverage.
Do yourself a favor and sit down with your auto insurance provider to see what you can do to qualify for discounts, bundle your coverage and prepare for potential premium increases. Knowing what’s coming up on the road ahead is great for life and for driving.
Category: Advice
