Insurers calculate your auto insurance premium after considering hundreds of factors based on their records of claims histories. Your age, gender and the type of car you drive all affect what you’ll pay for coverage. By changing some of these factors, you can earn savings and discounts on your monthly premium. Here are three tips on how you can save money on auto insurance:
- Bundle your policies: Insurers want your business—plain and simple. By writing multiple policies with a single insurer, you’re giving it what it wants. Insurers want to encourage your continued business, so they offer discounts when you create policy bundles. The most common bundle is home and auto, but you can combine many more lines of business, including multiple cars or any combination of home, auto, boat, RV, life etc.
- Drive safe: You may qualify for a discount if you have a record of safe driving and if you own a safe car. Safe drivers with clean records cost lost for insurance companies to cover, which can translate to discounts for you. Safety also extends to the type of car you drive. A vehicle with built-in safety features reduces your risk of bodily injury and deters theft. The safer you are behind the wheel, the more likely you are to qualify for a safe driver/car discount.
- Shop smart: The car you buy will affect your insurance premium. For instance, you may have heard that owners of red sports cars pay more for insurance. In some cases, this is true because owners of such cars tend to drive faster and more recklessly than owners of modest cars, which leads to more claims filed. These cars are riskier for insurers to cover and those costs translate back to you. If paying a low premium is important to you, you may consider trading in that sports car for a practical sedan.
Ask your agent if you qualify for any discounts on your auto insurance. Others include discounts for good students, seniors, federal employees, military personnel and teachers.
Learn if you can save more money. Call Pan American Insurance at (915) 562-0009 for more information on El Paso auto insurance.