Did you know that the average annual cost of car insurance is about $800 across the U.S.? Of course, that is a general number that tells only a partial truth about the cost of car insurance in America. The reality is that many drivers pay much higher and much lower rates for coverage than the national average. Wisconsin drivers have been fortunate enough to enjoy historically lower costs on car insurance than drivers many other states. However, insurance rates can vary wildly even within our state. Your personal rates will depend on your risk factors, as well as where you purchase your coverage. Continue reading to learn more about the cost of car insurance and how you can keep your rates affordable.
Calculating Your Rates
If you have ever shopped for car insurance on your own, you may have found that the same policy for the same drivers and same vehicles costs hundreds of dollars more with one insurer than another. It is easy to assume that one insurance company must offer lower rates across the board since there are no other variables changing in your quotes other than the insurer. The truth is the same insurer that offers the lowest rates for you may be the most expensive for a friend. That is because insurance companies use special formulas that weight individual coverage risk factors. The key to getting the best rates is finding the insurance company that is most favorable toward your individual risk profile.
Doing that is easier said than done; that is, unless you work with an independent agent. Here at Gutman Insurance, we work for our customers – not any particular insurance company. That means we are free to shop around for favorable rates from multiple insurers until we find a policy that fits our clients’ needs.
Factors that Affect Your Premiums
There are many things that can affect the cost of car insurance. Some, such as the age of the drivers on your policy, are outside of your control. Others, such as your claims history and driver record, are within your realm of influence. The list of factors that can affect your insurance premiums is long, but some examples include:
- The number of claims you have made in the past 5-7 years
- The types of violations on your driver record
- The number of violations on your driver record
- The age of drivers on your policy, particularly young drivers and those over age 70
- The type, age, and value of the car you drive
- The number of miles you put on your vehicle each year
- The crime rates in your neighborhood
- The information in your credit report
Lowering Car Insurance Costs
As your independent car insurance agency, we here at Gutman Insurance are always looking for ways of saving our clients’ money. While having the right amount of insurance protection remains our most important goal, we can also find ways of lowering costs without sacrificing coverage. For example, we may recommend that you:
- Increase the cost of your deductible
- Enroll in a driver safety course
- Insure all of your vehicles under the same insurance policy
- Insure your home with the same carrier as your vehicle
- Avoid making insurance claims for small damages that could raise your rates, such as a crack in your windshield or a small ding in your door.
For more information about keeping the cost of car insurance affordable for your household, contact our office today.