Lowering Car Insurance Premiums

When faced with auto insurance policy renewal, drivers may find it tempting to select a lower level of protection in an effort to save some money on insurance premiums. However, some drivers find out too late that this tactic can turn out to be counter-productive.

Lack of coverage can significantly affect the benefits that drivers may be entitled to claim when accidents occur. There are other ways to lower driver premiums without sacrificing maximum coverage.

Selecting a vehicle that favours lower premiums

When making a premium price determination, the Insurance Corporation of British Columbia looks at the type of vehicle a driver owns...

Factors that affect premium considerations when it comes to vehicle type are:

  • The make of the vehicle
  • The model
  • The age of the vehicle
  • Repair history

The insurer looks at a driver's vehicle and groups it in relation to other vehicles with similar makes, horsepower and price. The car is then given a vehicle identification code. That code helps determine the price of the insurance premium for that specific car.

Before purchasing a new vehicle, it can be beneficial to talk to an insurance broker about the types of vehicles that have lower premium costs.

Accident history

If a driver has several at-fault accidents on this or her driving record, this will almost certainly insurance raise premiums.

Taking care while driving is certainly worth the effort - not only to avoid accidents, but to help control insurance premiums. For every year that a driver does not have an at-fault crash, the year-long clean record entitles the driver to better discounts. When determining at-fault liability in an accident, insurers look at whether a driver was more than 25 per cent at fault. If they were, this will negatively affect the premium.

If a driver is able to limit the incidence of at-fault accidents, the likelihood of their premium rising will remain low.

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