Auto insurance rates are established by underwriters who use data such as vehicle histories, accident statistics and driver profiles to determine policy prices. Although calculations are relatively strict when these factors are written into auto insurance quotes, road users still have a certain amount of leverage available to bring auto insurance rates down.
The importance of a solid driving history can never be underestimated. If a driver can maintain a safe record, avoid accidents and defer from making unnecessary claims, they will be looked upon favorably by their preferred auto insurance carrier.
The type of vehicle you drive has a marked effect on auto insurance rates and road users should avoid high-performance models with a high market value if they wish to keep cost down. It can be more cost-effective to drive a car with a small engine capacity, even if the vehicle is relatively new. It is also prudent to avoid making modifications on a vehicle, particularly cosmetic alterations which can act as a magnet to vandals.
It stands to reason that the less time you spend on the road, the less chance there is of actually being involved in an accident. Try to limit vehicle usage in a bid to reduce your annual mileage by using public transport, car pooling or simply walking over shorter journeys. As well as saving money on your auto insurance rates, you’ll also save money on fuel costs. Make sure you inform your auto insurance carrier of your mileage reductions the next time you renew your policy.