Are you paying too much for car insurance?

Drivers often pay too much for their car insurance without realizing why their rates are so high. A variety of factors determine how much you pay for your car insurance policy.

While some of these factors are not in your control, you may be able to adjust your current rate depending upon what factor is influencing your plan. To gain a better understanding of how you can reduce your car insurance payments, you must understand how the insurance company calculated your current policy.

Everything from your marital status to your neighborhood can affect the amount you are required to pay for your car insurance plan. Each of these factors is calculated to determine how safe of a driver you are likely to be. If you are found to have any risk factors, your car insurance payments will higher than those for drivers with the same plan who do not share these factors. This guide can help you determine how to save money on your car insurance if you are paying too much.

Your Marital Status and Age

One of the main elements used to determine your car insurance payments is your marital status. Regardless of whether you are a good driver, you often pay more for your premium if you are single than you would if you were married. Many insurance providers believe married drivers are safer than single drivers. On average, drivers who are single pay approximately 21 percent more per month than married drivers who are receiving the exact same insurance plan.

In addition to marital status, your age has a large impact on how much you pay for insurance premiums. When you are younger than 25 years of age, regardless of whether you are single, you can expect to pay almost 50 percent more toward your car insurance premium than drivers who are older than 25. Your premium rate is elevated due to the risk factor associated with younger drivers.

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Insurance providers have found that drivers who are younger than 25 are more likely to get into an accident than older drivers who have acquired more experience. There is no viable solution to this issue, as you are almost guaranteed to pay a higher premium for your car insurance until you are older. Depending on your insurance provider and state, you may be able to take additional driver safety courses at a young age to help reduce your insurance costs.

As you grow older, you can expect to pay less toward your monthly premium as long as you do not have any marks against your insurance, such as getting into an accident or committing a driving violation.

Your Location

The amount you pay for your car insurance is also influenced by the neighborhood you live in. Drivers in some states are required to pay more for monthly premiums than others simply based upon location and other risk factors assessed by the insurance provider. For example, if you reside in Louisiana, your car insurance payments are 33 percent higher than insurance plans for drivers in certain other states. Drivers in Wisconsin generally pay 28 percent less than those in other states.

Your car insurance premium can additionally vary depending upon either the city or county you live in. You may end up paying hundreds more toward your car insurance plan each year simply because of the town or county where you live. If you live in a city with higher accident rates, you are automatically at higher risk of an accident, no matter how safe of a driver you are.

You can research the premiums for nearby communities when you are planning to move. Depending on where you are going, you may be able to pay less for your car insurance. This normally happens if you are moving from a busy city to a smaller town where there are naturally fewer accidents.

Unnecessary Charges

Many drivers do not take the time to read through the list of charges from their insurance provider. You may be paying too much for car insurance based upon the coverage you have selected. Many insurance providers have various tiers of coverage. Higher tiers are more expensive and may offer few features you actually need. For example, you may be paying more per month if you opted to have collision coverage as part of your car insurance plan.

Insurance agents receive compensation based on the size of the policy they are acquiring, meaning your agent may have tacked on added charges to make more money for themselves. This is why it is often better to get an online quote for your policy rather than speaking to a representative by phone. Review your current insurance plan carefully to determine if there are any features you are paying extra for but do not deem necessary to your overall driving needs. In doing so, you can greatly reduce the amount you are required to pay per month for your car insurance by eliminating unnecessary charges.

Many drivers do not understand all the services provided by their insurance agency. Insurance providers rely on drivers being unwilling to ask questions about these charges. If there is something you are unsure of, take the time to ask not only your insurance agency, but a third party with an understanding of auto insurance terms. Even if there is a service you want, you may be able to get this service moved to a less expensive plan. Insurance providers are often willing to offer discounted plans or other benefits if they believe you are planning to leave for a different insurance provider.

You may want to consider switching your car insurance policy altogether if you determine you do not need the same level of coverage you have been paying for up until this point. Often, you may be able to find a better deal offered by a different insurance provider.

Ask for Discounts

If you are happy with all the services offered through your insurance plan but still feel you are paying too much, ask your insurance provider if there are any discounts available. Some insurance providers offer discounts for drivers who enroll in a safe driving program or drivers who complete driver safety courses. However, these benefits are not always advertised. If your current insurance provider does not offer discounts, look at other insurance providers in the area to see if there are more benefits available.

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