In today’s economy many people do not want to spend the extra money each month in order to carry adequate car insurance. Many simply buy the minimum that is required, or some skip it all together. In today’s economy, many people simply cannot afford to do these things. Not having insurance can lead you to be stuck with hundreds of thousands of dollars in bills if you were to be involved in an accident. Today it is even more important to carry adequate car insurance, but fortunately, you can generally find a discount premium to help ease the financial burden each month.
First it is always a good idea to understand the factors of your insurance premium. Car insurance rates are calculated based on risk – the higher the risk, the more you pay. Although most people think of driving history as the main indicator of risk, this is just one of many factors. Car insurance companies do extensive research in order to find factors that correlate with risk. Things such as marital status, age, gender, car type, credit history, occupation, address, and education level are all factors that can help determine your car insurance rate. Once you understand how your rate is calculated, you can try to adjust your life so these factors are working in your favor.