Auto insurance is a risky business, accepting a new auto insurance policy to a client is like taking a risk because they will never know if the policyholder will exceed or not, the number of claims against the cumulative auto insurance premiums they are paying.
The auto insurance company must collect more from you than they pay out of you to stay in the business, therefore when auto insurance company determines your insurance premiums they include surcharge for any increased risk based on their evaluation on your part, but they are also reducing the insurance premiums if they determine that you met a certain positive qualifications they are requiring.
Tips for getting and keeping a low auto insurance premiums
Make sure you shop around for the best price. However, beware of small, start-up insurance companies - they may give you the run around if you need to file a claim.
Increase your deductible. This can reduce your premiums by 20% and if you can drive accident free for a couple years, the savings will be enough to pay the higher deductible for any future accident.
If you generally drive alone and have excellent medical insurance through your employer, consider reducing your medical coverage to the minimum. There is no reason to have double coverage.
If you have an older/low-valued vehicle, consider skipping collision and comprehensive. In general, this coverage’s are not cost-effective for vehicles worth say only, a couple thousand dollars.
If you're involved in a minor accident and there are no apparent injuries, try to settle the matter with the other party without police involvement and without contacting either party auto insurance company. This will keep your driving record clean and will not give the auto insurance company an opportunity to raise your insurance premiums.
Buy a vehicle with airbags, anti-lock brakes, and automatic seat belts. Many auto insurance companies will offer discounts on auto's equipped with such life-saving devices.
Get an alarm system for your auto. Some auto insurance companies offer discounts for various anti-theft devices.
If you are a student, keep those grades up! Many auto insurance companies give discounts for students who maintain at least a "B" average. Their reasoning is that better students are typically better drivers.
If you're single but are getting married, ask your insurance company if you'll receive a discount with your new status. Many auto insurance companies do reward married drivers as they see them as being more stable and less likely to drive recklessly, that is why they give a discount on auto insurance premiums.
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