In National City, cheap auto insurance can be difficult to find. Some policies are expensive, and drivers are often confused about why their premiums are so high. Here are 4 common reasons why people pay high rates.
1. Bad Driving Record
If you’ve caused accidents in the past or gotten tickets, your insurer will take that into account when calculating your premium. Your rates will likely be higher than average. Driving safely and building up a good record is the simplest way to lower your premium.
2. Driving a Rare or Expensive Vehicle
When you take out collision coverage on a vehicle, it means the insurance agency will pay you the value of your car if it’s totaled. If you drive an expensive model, they’ll have to give you a high payout, which means you present more of a financial risk, resulting in a higher premium for you. The same principle applies to rare or limited-edition models.
3. Too Much Coverage
Though you’re legally required to carry a certain amount of liability insurance, purchasing other types of coverage, like collision and comprehensive insurance, is optional. If you drive an older model car that isn’t worth much money, it may make sense financially to lower your premium by dropping any extra coverage. Review your policy to get a better understanding of what you’re paying for, and evaluate how much insurance you really need.
4. Not Bundling Policies
Many National City auto insurance providers will give you a discount if you buy multiple types of insurance policies from them. If you have life insurance or a homeowner’s policy with other agencies, consider buying them from your auto insurance agency instead. You should be able to transfer policies over fairly easily.
Find out other ways you can lower your auto insurance rate today by contacting American Tri-Star. In addition to affordable car insurance, we also offer home, health, motorcycle, and commercial insurance in National City. Give us a call at 619-474-3900, and one of our knowledgeable representatives can answer your questions.