Your likelihood of filing an auto insurance claim, plus the potential value of such claims, determine your auto insurance risk. Lower your risks to enjoy affordable coverage rates. The following measures will help you lower your risk.
Park in a Secure Area
Ideally, you should only park in garages or covered areas. Street parking is particularly dangerous because:
- Other vehicles can clip your car
- Natural disaster, such as storms, can damage your car
- Thieves can break into or steal your car
Thus, safe parking may entitle you to lower rates. Insurance companies are particularly interested in where you park your car overnight since that is where your car spends most of its time.
Live in a Safe Neighborhood
Your location determines multiple risks your car face. For example, your location determines:
- The roads you frequently drive on — some roads are more dangerous than others
- The density of cars in your neighborhood — more cars mean a high risk of accident
- The risk of car theft in your area
Think about your car insurance premiums the next time you want to move to another house.
Install Security Devices
Car theft means your insurance company has to compensate you for its value just before the theft. Install antitheft devices to lower your risk of car theft. Antitheft devices include:
- Dashboard cameras (dashcams)
- Car alarms
- Tracking systems
Check with your insurance company which antitheft devices attract discounts.
Drive an Inexpensive Car
Anything that reduces the amount of money your insurance company can spend on you reduces your insurance risk. For example, if you have a $30,000 car and a friend has a $60,000 car, the insurance company is more likely to spend more money on your friend than you. Thus, your insurance company may give you lower rates compared to your friend's rates.
Maintain a Clean Driving History
Your driving history is probably the biggest determinant of your auto insurance risk. Incidences that mar your driving history include:
- Traffic tickets
- Driving without insurance
- DUI (driving under the influence) convictions
Keep your driving history clean and enjoy low rates.
Increase Your Deductible
Your deductible determines the amount your insurance company doesn't have to pay in case of an accident. For example, if you have a $1,000 deductible and suffer a $5,000 loss, your insurance company will only compensate you for $4,000. Thus, a high deductible means the insurance company doesn't have to spend as much on you as another driver with a lower deductible.
For more tips, reach out to a local insurance provider that can talk to you about your auto insurance policy.