The sooner you discover the rate classification factors as well as the cost-saving techniques, the earlier you will get going yourself a bundle each year.
Let’s start with a typical insurance bill for an adult using a clean record who owns a five-year-old medium-priced car and lives in a mid-sized city of 30,000. I will refer to this standard example throughout the article to say the savings you can obtain her explanation by making various modifications in your rate classification and coverage.
When the same person lived inside a rural town using a small population and for that reason a scarcity of cars and accidents, his premium could be considerably less and would probably range be-tween $800 and $1100 a year. However, if he lived in a large metropolitan area, the premium could run up to $800 to $900 or more a year. As you can see, insurance bills can differ more than $500 on such basis as geographic location alone.
On this example, our adult male received a single.00 rate factor from all three companies; however, he would have saved $15 annually or 37 V2 percent annually by looking around for company A’s current rate-that’s why it is so important to understand the art of doing your research.
All insurance providers give the 1.00 rate key to adult/married drivers: married females at any age; married males ages 25 and older; single females ages 25 and older; and single males ages 30 and older.
The annual premiums will differ among these adult/married groups because of the huge variations in the insurance companies’ base premium rates. As an example, an adult/ married male get a 1.00 rate factor from either company A, B, or C. However, the base premium rates because of these companies will change tremendously, now as well as in the future, resulting in the divergence in their final premium amounts. The bottom premium rates for, let’s say, bodily injury liability limits of 25/50 could be $40 for company A ($40 X 1.00 = $40), $50 for company B ($50 X 1.00 = $50), and maybe $55 for company C ($55 X 1.00 – $55), while annually from now, the premium schedule could possibly be completely reversed!
One of the most overlooked areas of car insurance savings yet among its most efficient is the multi-car/vehicle add-on discount. Most drivers who qualify achieve annual savings as high as 20 percent. However, there are millions of drivers who are still unaware of this discount’s existence and, therefore, are passing up on its premium savings benefits.