Sunday, October 18, 2009

Tips on Lowering Car Accident Insurance Premiums

A lot of people would usually wonder why they are paying for a comparably higher car accident insurance premiums compared to other people.

There are a lot of factors that affect the rate of car accident insurance policies. Some of them are:

• Age – The highest car accident insurance premiums are with young drivers and elderly drivers.

• Sex – Male drivers are considered more prone to accidents than women.

• Location – There is more risk of being involved in an accident in highly populated areas
• Model of Car – A more expensive car is more prone to theft.

• Previous accidents – If the person has been involved in a previous accident, it will raise his/her car accident insurance premiums.

To lower your car insurance premiums, here are some tips that you can follow:

Shop Around for Options

Insurance companies are private companies with a lot of competitors. Some offer discounts and packages that could significantly lower your car accident premiums.

However, take into consideration the financial stability of the insurance company as well. You are paying for insurance, to secure your finances and an unstable insurance company may fold before you reap any benefits.

Take a Driving Course

Taking a driving course will show your intention to be a responsible driver and will give the impression that you will be less prone to car accidents.

It usually cost around $100 for a day’s course, but it can go a long way in lowering your premiums.

Car Safety Features

Adding car safety features such as anti-lock brakes, dual side air bags, and electronic seatbelts reduce the risk of injury in case of a car accident.

Reduced risk of injuries will also translate to reduced car accident insurance premiums.

Anti-Theft Devices

The risk of theft can also add to your car accident premiums especially if you are driving an expensive car.

Adding anti-theft devices such as a car alarm will reduce the risk of theft and may lower your premiums.

Drive a low-profile car

Driving a red sports car is not exactly avoiding attention. The more expensive a car is, the more it is prone to theft.

A simple sedan will fetch a lower car accident insurance premium than a Ferrari.

Credit reports are used by insurance companies to calculate the amount of risk they will assume to offer you a car accident insurance policy.

Make sure to pay your bills on time and review your credit reports every year to make sure there are no problems.

Avail of Group Discounts

A lot of companies offer reductions in car accident premiums if availed through a group plan.

It could be through an employer, professional, business or other associations.

The best way to keep your car accident premiums low is to be a responsible driver and avoid troubles in the streets.

However, if you are injured in a car accident in the future, be sure to consult a car accident attorney to help you in negotiating with your or the liable party’s insurance company.

Article Source : http://www.articlecity.com/articles/legal/article_1752.shtml

How to Keep Your Car Insurance Rates Low

Car insurance rates are calculated accounting in various factors that determine the “risk” of the driver.

A “high-risk” driver will have a higher car insurance rate while a “low-risk” driver will pay a lesser premium.

The factors that are considered for calculating your car insurance rates are:

• Age - According to studies, teen and elderly drivers are more likely to be involved in a car accident than other age groups.

• Car model – Insurance companies also consider the possibility of your car being stolen. A more expensive car is much more likely to be stolen than a simple car.

• Accident History – Involvement in previous accidents automatically makes you a high-risk driver. If you are liable for multiple accidents, some insurance companies may even label you as “uninsurable.”

• Location – If you are living in a highly populated area, your insurance rate will be higher as there is more possibility of being involved in an accident than in areas with a small population.

• Gender – According to statistics, males are more involved in an accident than females, giving them a higher car insurance rate. However, recent studies show that female related accident rates are catching up to men.

These calculations may seem unfair to some, but it is the way it is and insurance companies are not likely to change its methods anytime soon.

The least you can do is to try and decrease your car insurance rates. The key to that is showing that you are a low-risk driver.

Here are some tips you can follow to decrease your car insurance rates:

Take a Driver’s Education Course

Although it is not required before getting a license, a driver’s education course could slash about 10% from your car insurance rate.

It will show that you are serious about being a responsible driver, and who knows, you might actually learn how to be a defensive driver after.

Buy a Safe Car

An expensive sports car is more likely to be stolen and an SUV is prone to rollovers. Buy a simple car like a sedan.

It will greatly lower your car insurance rates.

In addition, some insurance companies also give discounts for cars that are environment friendly.

Use One Insurance Company

If you insure your home and other properties together with your car with one insurance provider, you should receive discounts.

This also applies to multiple cars. Insuring all cars under one insurance company will lower your car insurance rate.

Add Safety Features to your Car

Safety features such as automatic seatbelts and side airbags will prevent or lessen injuries during an accident.

Less injuries means less claims for insurance companies, so it should lower your car insurance rate.

Add Anti-Theft Devices

Adding anti-theft devices and parking your car in a garage reduces the risk of your car being stolen.

The reduced risk of theft would reduce your car insurance rate. Discounts can reach up to 25 percent.

Those are just some of the ways to keep your car insurance rates low. The best way to keep them low, though, is to avoid accidents.

That is why it is important that you consult a car accident attorney if you are involved in one. They will help make sure that if the accident is not your fault, then the claim will be made from the liable party’s insurance company and not your own.

Article Source : http://www.articlecity.com/articles/legal/article_1785.shtml