subject: Things You Can Do To Increase Your Car Insurance (don't Do It) [print this page] The lower your car insurance rates, the better. As long as you have adequate coverage, you want to pay as little as possible, especially if you're on a limited budget. There's no shortage of advice regarding ways to minimize your premiums.
Sometimes, however, it's worth approaching an issue from a contrary perspective in order to drive the point home. With this in mind, we'll take a lighthearted look below at six proven strategies for skyrocketing your auto insurance premiums.
#1 - Purchase The Wrong Type Of Vehicle
Some cars are more expensive to insure than others. Why? Because they suggest a higher likelihood of future claims. This is the case for both liability coverage and collision and comprehensive.
For Instance, image you got a Towncar. Nothing about this vehicle implies you'll be participating in off-road races. In fact, it's one of the most inexpensive vehicles to insure. On the other hand, suppose you drive a Porsche 911 Carrera. Many insurance companies assume you'll be taking advantage of its small body and powerful engine. This translates into an increased risk of accidents and injuries. And that means higher premiums.
#2 - Climb Behind The Wheel While Intoxicated
Even though drinking and driving is obviously a dangerous mix, it can be an effective way to raise your car insurance rates. If you are convicted of a DUI, your insurer will respond in one of two ways: they will not raise your rates or cancel the coverage. If they cancel your policy, you'll have no trouble finding high-priced coverage elsewhere. In fact, it may be your only option.
Why do insurers respond in this manner? Because deciding to climb behind the wheel of your car while intoxicated implies you'll make other poor decisions that lead to claims.
#3 - Combine Policies With A Risky Motorist
Suppose your driving record is spotless, and you're unwilling to blemish it in your pursuit of higher premiums. An alternative approach is to marry someone whose driving record is already severely tainted, and combine your policies. Your auto insurance company will calculate your rates by taking into account your spouse's blemished record. As a result, the car insurance rates will go up.
#4 - Attract Tickets And Fender-Benders
A single accident for which you are found at fault can cause your premiums to soar. A few tickets and demerit points can produce the same effect. But you can do better. If you're truly dedicated to raising your auto insurance rates, committing multiple moving violations and at-fault accidents will be even more effective.
Your insurer will presume that extending coverage to you exposes them to insurance loss down the road. Hence, they'll assign a higher risk class to your policy, which will boost your premiums.
#5 - Lower Your Deductibles
This is a quick, hassle-free method for enjoying higher auto insurance rates. Simply lower your deductible. If it is currently $1,000, lower it to $500. If it's $500, consider lowering it to $250. The lower it is, the more risk assumed by your insurer.
For example, suppose you drop your deductible from $1,000 to $250. If you then cause an accident that results in $1,000 in damage, your auto insurer will be forced to pay most of the repair bill. Because of that, when you lower your deductible, the insurance company will increase the rates in order to compensate.
#6 - Neglect To Shop Around
To be fair, this approach doesn't guarantee you'll pay the highest possible auto insurance rates. There's a small chance you'll stumble upon an insurer who charges a reasonable price for coverage. That said, few methods are more likely to result in higher-than-necessary premiums.
Before it was easy not to compare. It is harder today than it was become, but because you can easily compare rates from different companies side by side in minutes online. Here again, with dedication, avoiding the task is still possible.
Finding Adequate Coverage At A Bargain Price
This has obviously been a tongue-in-cheek discussion thus far. No one actively seeks higher insurance rates. But it serves as a useful reminder regarding how auto insurers perceive risk and calculate premiums.
The most effective way to find affordable car insurance coverage for you and your family is to compare quotes from multiple insurers side by side. You'll likely discover they vary by a wide margin. There are significant savings.
by: Kade Phillips
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