Drivers who are seeking car insurance in North Carolina would be well-advised to consider the various factors that can play a significant role in their ability to get good coverage at the lowest price.
But not all drivers are going to pay the same in premiums every year because each driver is different. The individual with a speeding ticket or an accident on their driving record will pay more to maintain proper coverage than the individual who has kept their history free of incidents.
Some other aspects are pretty obvious. Your age is going to have an impact, teens that are just getting behind the wheel and the elderly who may not be as sharp as they once were are both going to find themselves paying higher rates.
Coverage limits are another prevailing facet of car insurance. The more comprehensive and wide-ranging the coverage on your vehicle, the higher your premiums can rise.
Yes, these things can all have an impact on the costs of your policy but there are a number of additional factors that can also wreak havoc on your bottom line when you’re only trying to insure your car. Since owning car insurance is mandatory if you plan to travel the nation’s roads, you will want to know the best methods for keeping your expenses down.
Here are the four most impactful factors that can affect your car insurance and the ways in which you can use them to your advantage when it’s time to select the best policy.
The deductible on your policy is the amount of money you must initially pay prior to your benefits being triggered in order to cover loss or damage to your vehicle, personal property, and other items outlined in your coverage.
As that money is being paid out of pocket before your insurance kicks in, the amount of your deductible can help to increase or decrease your premiums. Those policyholders who have a deductible of $1,000 are going to pay less for their insurance because that reduces the level of financial exposure potentially suffered by the insurance company should something happen.
Lower deductibles will mean higher rates since the opposite is true with respect to how much the insurance company will be expected to pay out on any claim. This one factor can have a substantial effect on your insurance as it could result in your paying more to settle any claims that might occur from an accident.
2. Credit Score
This may sound odd, but it’s true. The level of your credit score could have an impact on your car insurance specifically because some companies view policyholders who have lower scores as a greater risk.
Why is that you ask? According to industry studies, drivers with poor credit are more likely to file a greater number of claims for potentially higher payouts and that makes insurance companies nervous. So if your credit score could use some work, take the necessary steps to bring it up. In doing so, you could be paying less for your coverage when it comes time to renew with your insurance provider.
3. Check the Odometer
You need car insurance to drive a vehicle for the express purpose of covering yours and other drivers’ costs should something happen. But if your vehicle isn’t being driven, then your insurance premiums could be reduced.
Less driving means fewer miles on your car and that helps to lower your costs over the long run. It keeps your vehicle out of potential trouble and your insurer requires less of a commitment from you on those monthly premiums.
Many insurance companies who find that they are insuring a vehicle that isn’t used very often will typically request a mileage estimate to help them establish a proper quote.
4. Choice of Automobile
Two-door or four-door. V4 or V6. Convertible or hard top. These are just some of the choices you’ll face when you are selecting your next vehicle. But when you show up at the dealer’s showroom, keeping your insurance in mind will be a helpful way to lower those costs.
That’s because the type of car you drive will also have a large impact on your rates. Exotic sports cars and huge SUV’s can be more costly to insure but a great way to lower your expenses is by checking the various safety features that are available.
Airbags, anti-lock brakes, anti-theft deterrent systems, and many other similar safety measures can have an effect on your insurance and keep more cash in your pocket from month to month. Of course, paying on an annual basis wouldn’t hurt either as that can reduce your premiums even more.