Your age is a factor in determining your auto insurance rates. Obviously there’s nothing you can do to alter your age, but if you are a young driver and still in school getting good grades translates into lower insurance premiums from several companies. And – obviously – keeping a good, clean driving record also helps keep your rates down.
Tickets, especially for speeding or other moving violations count against you and can significantly increase your rates. Making frequent claims will also impact your rates in a negative manner.
If you are an older driver your rates may also be increased simply due to the fact that older drivers – as a group – are considered a greater insurance risk than middle-aged drivers. Taking an approved refresher driver’s training course can help bring those rates back down. Senior organizations, such as AARP may have additional ideas for ways to keep your rates from skyrocketing.
If you drive a sports or muscle car, or an extremely pricey automobile you can count on paying higher rates. Consider trading in for a more sedate model if you’re having trouble affording your current premiums.
For many people the easiest change to make in their auto policy is the deductible they are willing to pay. A deductible is the amount that you agree to pay out of your own pocket for the repair of your car whenever there is a claim. In this way the insurance company pays less for the repair and the insured has an incentive not to make small or frivolous claims.
In virtually all cases, the larger your deductible the lower your monthly premium payments.
If your car is being financed then the company financing your car will require that you carry full insurance coverage on your car. However, if you own an older car that is paid for, you can also cancel what is called the Comprehensive portion of your insurance and merely keep the Collision portion of your policy, which is required by state law in Colorado.
Comprehensive insurance pays for the repair of your vehicle in case of an accident. If your car is old or has little remaining value you can save money by canceling the comprehensive portion of your policy and paying for your own repairs out of your own pocket if you are in an accident.
There are several sites online which allow you to enter all or most of the above information into a simple form which will then print out an easy-to-read side-by-side comparison of the rates currently being offered by different insurance companies here in Colorado. If you have access to the internet getting such a comparison can save you hundreds – in extreme cases even a thousand dollars or more – each and every year in auto insurance premiums.