How to Save Car Insurance Rate

Many people chose to ride or drive a car due to comfort and convenience it provides. It is also faster and easier means of transportation if compared to other vehicles. Nevertheless, like all others, there could be several legal ramifications once a car was involved in an accident. One of which is dealing with insurance companies. Hence, it would be very advantageous to drivers, specifically, to know the car insurance rates.

Having car insurance is required by most states. Typically, liability insurance is the most common type. In this type of insurance, the insurer pays the person you have caused damage.

Car Insurance Rate

In buying car insurance, your primary consideration should be the rate. Car insurance rates vary depending on risk. Insurance companies base their premiums on the risk factors. The higher the risk, the higher the premiums will be.

Premiums are costly, and it may be even higher than the cost of the car. It is due to high chances of cars to be exposed in danger. The insurer will be the one to determine how much you are going to pay using probabilities and statistics.

Insurance companies consider age, sex, marital status and the type of the car-should it be ordinary, sports car, among others. They also consider the profession, life style, financial status, driving status, and residence.

Rates may also rely on the automobile insurance company. The price depends on the brand name.

Car Insurance Problems

Aside from higher premiums, one problem that you will encounter in dealing with car insurance is the unlawful practice of discrimination on the basis of geographic location when providing loans or insurance coverage because of high risk or possibility of loss- also known as redlining.

Although such practice is considered illegal, discrimination still exists. Some insurance companies do not grant coverage because of racial differences.

Another car insurance problem is the practice of granting contractual clauses. These clauses limit the insurer’s responsibility and obligation to the insured, specifically, if that person was involved in a major liability.

Additionally, there are also some insurance companies who require high premiums or decline to cover persons with high-risk of exposure particularly those who drive sports car. Whereas, there are some who intentionally makes policies that are too complex, making others not to understand the payment and coverage clearly.

Also, one of the problems you may encounter in buying car insurance is the higher rate especially if your car is at higher risk, or has higher exposure to danger such as sports car. However, there are some ways you could do to save.

Ways to Save Car Insurance Rates

1. Compare insurance quotes with other companies.
2. If your car has a lower risk ask for discounts- it can be through driving less miles per year.
3. You can also ask discounts if you are senior citizen.
4. Take defensive driving classes.
5. Install safety and protective devices in your car.
6. Combine insurance coverage. There are some insurance companies who cut premiums up to 15%, and you can buy auto and home insurance to the same insurer to save.
7. Raise deductible by increasing a collision deductible to your auto policy.
8. Shoulder minor repairs or those that cost below $1, 000.
9. Have a clean driving record for at least 36 months or three years. This will be helpful in lowering premiums.
10. Chose a simple but decent car. The more expensive your car will be, the more cost to insure. Luxurious cars are also subject to theft.

Determining car insurance rate is a very important matter. Once involved in an accident, knowledge about it could be beneficial.


The Mesriani Law Group has a wide range of legal resources as we work with the best lawyers and litigators in each state across the United States. We offer a unique attorney directory where you can find a lawyer's location and area of practices. For more information contact Mesriani Law Group at 310-826-6300 or visit the main office at 12400 Wilshire Blvd. Suite 810 Los Angeles CA 90025.