H2O Magazine

Affordable insurance 

It could be hard to find affordable motor insurance rates until and unless you know how to find and qualify for them. Frequently, consumers end up paying more for motor insurance because they do not know the ins and outs or industry secrets of motor insurance. While no one but the insurance company of the vehicle knows the full details of how to calculate monthly insurance premiums, understanding some of the tricks can help you save money in the long run.

Credit scores play major role

Perhaps, one of the lesser known facts that your credit score affects what you pay for motor insurance. When you apply for auto policies, most major motor insurance companies will pull your credit history. This is because studies have shown a link between credit scores and the likelihood that a person files a complaint. Those with higher credit scores also tend to make payments on time and stay with the same company for longer periods in contrast to people with low credit score. Using information from your credit history, insurance companies calculate an “insurance risk score” that may affect the overall rate of insurance premium. When you have had recent changes in credit rating or are waiting for some negative elements to be corrected on your credit report, you may be able to get lower motor insurance rates. Nonetheless, you must wait until your credit score elevated.

Model and make factored in

Another factor is the make and model of your vehicle. Even if agencies do not publish the data, all auto insurers have a list of ratings for each car make and model. The score ranges from 1 to 27, and the fewer, the lower your motor insurance rates. To qualify for lower monthly rates, choose a less expensive car with high safety ratings and low rates of theft.

Make bulk payments

Paying motor insurance premiums all at once can also save significant money. For example, many motor insurance companies accept insurance premiums  monthly, quarterly or annually.

Lower your risks

After the first incident of misconduct, you will see a premium increase of about 40%. You can find companies that lose your first accident, but this is variable. You can be taxed at normal rate after spending a number of years – usually between two and five – without additional incident guilty.

As you can see, many factors go into determining your motor insurance premiums. While most all companies use the same vehicle insurance policy premium calculation, not all factors considered same.

For this reason, it is important to shop around and get quotes from several different insurers. This can be done quickly and easily by searching local motor insurance. Just enter a zip code or state and find the offers of motor insurance companies in your area. You may be surprised how prices vary widely. Always compare insurance quotes to get the best deals in the market.