We’ve previously discussed car insurance rates in terms of factors that most drivers don’t have a lot of control over. Everything from your home address, to your age and even the make of your vehicle, is a ‘fixed’ factor that most insurance providers won’t budge on when it comes to determining auto insurance premiums. Luckily, there are quite a few factors used in this process that you do have control over and can use in your favor to help lower your overall car insurance costs.
6 Flexible Factors Used to Determine Car Insurance Premiums
1. Grades
While this is a factor that mostly caters to younger drivers, if you’re a parent who is looking to insure a teenager – this factor can offer some real relief for your wallet. Many insurance providers across the US run discount programs for students who are in high school or college undergrads that maintain a higher overall grade point average. Not sure if your current policy includes this discount? Don’t hesitate to ask one of our independent insurance agents for more information.
2. Personal Credit History
While this rating factor is controversial, studies have shown that drivers with a lower credit score (below 600) are more likely to file an auto insurance claim. But keep in mind that insurance providers don’t look at the same credit score that a mortgage lender would. Instead, they look at your credit history to determine a credit-based insurance score and use this information to factor how much your car insurance costs will be. So, if you’ve been working on your credit, you can see a change in your insurance premiums over time as well.
3. Driving Courses
There is always a chance that your insurance provider will reward you for continued education in the field of safe driving. Many insurance companies offer additional discounts for teens that take defensive driving courses. Additionally, senior drivers may also be eligible for insurance discounts if they take a course that is designed specifically for their age bracket.
4. Claims History
The more insurance claims that you file, the greater the risk you pose to your provider. If you have a ton of different insurance claims in the past, you’ll likely have to pay higher premiums. And while it can be impossible to avoid certain types of claims, other issues may be better off taken care of out-of-pocket. For example, if you backed into your neighbors’ fence and it will cost less to repair on your own than it would to file a claim, this may be beneficial to your insurance costs.
5. Miles Driven Each Year
If you can modify your driving habits to include fewer miles driven over the year, you may see a substantial reduction in your insurance premiums. Insurance providers figure that the less time you spend on the road, the less likely you are to cause or be involved in an accident. This idea has led many insurance companies to offer policies that allow drivers to pay for coverage by the mile or to use mileage tracking apps that help to lower your costs.
6. Multiple or Bundling Policies
Adding multiple drivers to the same policy is an easy way to help reduce your insurance costs. However, if one of the drivers in your household is a high-risk, this option may not work in your favor. Additionally, many providers will offer discounts if you bundle two or more policies together like auto, home, and life insurance.
Learn More
At Krog Insurance, we’re always looking for new ways to help Minnesota drivers to save on their coverage. Interested in exploring your coverage options? Contact us today for more information and be sure to request a free quote.
