(New York, NY – Insurance News and Markets) – In the past few years, consumers have found that they are paying about 10 percent more for car insurance, and there are several reasons for this, according to the Insurance Information Institute (I.I.I). One factor is that there’s a stronger job market; this means more people are driving and more people are involved in accidents. People are driving faster- a dozen states have raised the speed limit to 70 or 80 mph, even higher, since 2012. Costs are also increasing because people are driving expensive vehicles.
“Don’t be one of those statistics,” said Jeanne M. Salvatore, senior vice president and chief communications officer at the I.I.I. “It’s very important to take driving seriously—not only will it keep you and your passengers safer, it can also help keep down the cost of your auto insurance.”
There are ways to lower the costs. Your insurance premium is based on things like your driving record; how much you use your car; where it is parked and where you live; the type of car you drive; your age and gender; your credit score; and the type and amount of coverage. Understanding these factors can help you get a better deal on your policy.
Tips to reduce the costs of your auto insurance policy
Shop around. Look for a financially strong insurance company with good customer service, and consider the prices of policies from those companies.
Check insurance costs before you buy the car. There are a variety of car-related costs that will affect your insurance: price of the car, repair costs, even its safety record.
Increase your deductible. If you have a higher deductible, you’ll be paying lower costs each month, just make sure you have money available to pay a claim.
Reduce coverage on older cars. Consider the market value of your car and compare it to the auto insurance premium. Comprehensive may not be the best option, cost-wise.
Keep your credit healthy. Insurers use credit information to price insurance policies.
Inquire about discounts. There are a variety of discounts that insurance companies offer.
Source: Insurance Information Institute.