Risk Retention and Reduction For Low Auto Insurance

Everyone knows one of the most dramatic ways to lower your car insurance rate is by eliminating coverage. Some do this by dropping liability limits while others drop collision and comprehensive coverage on older vehicles. When you do this, your assuming more risk and creating less risk for the Insurer.

If your car is less than $2,500, why insure if with collision and comprehensive? The extra cost to insure it will probably pay for the value within a year or so.

The truth about deductibles, yes having a higher deductible will lower your premium, do you really want to pay Up to $1000 to get your car repaired or replaced? $1,000 isn’t all that easy to come by; if it was this article probably wouldn’t have found you. A common deductible and the choice for most drivers with comprehensive and collision is $500. The deductible is paid by you per each occurrence.
Risk Retention

So in summary, anytime you put the risk on yourself, you’ll pay less in premium. Risk retention is accomplished done by selecting low limits of coverage and higher deductibles.

Risk Reduction

Reducing risk is the 2nd best way to get low auto insurance rates. According to insurance companies, your risk is reduced when you buy the sedan versus the sports car, when you drive less than $7,500 miles each year and when you keep your driving history clean of tickets and car accidents.

The final way to make sure your getting low auto insurance is by comparing the wide variety of markets. Some insurance companies are built to save senior citizens while others are set up to save more for the newer driver. It’s really tough to tell which company will offer the best rate since each company rates so many factors – differently.
Where does other responsibility fall in?

Is there a chance that if I own my own home, I’m possibly seen as a responsible individual or does the insurance company just really want to offer me a low rate in hopes of also selling me homeowners insurance either now or down the road?

This is a very good question and I believe the answer is yes. Or yes – yes. There are many ways we show our responsibility. Of course maintaining a clean driving record is one of the best ways to maintain a low auto insurance rate.