Reader’s Question:

How can I lower down my vehicle insurance rate? My policy is soon to expire and I want to get a cheaper insurance rate on my next policy.

Andrew

Bakersfield, CA

Since you’re due for a policy renewal, I suggest you go insurance shopping first before you agree on signing another contract with your current insurance carrier. Insurance companies frequently change vehicle insurance rates in order to adapt with the economy, the needs of their customers, and the competition. That’s why you need to see first if there is another company that offers lower rates so that the when you renew your policy, you know that your vehicle insurance rate is going to be lower.

When computing for vehicle insurance rates, what companies do first is they identify the risk level of the policy owner. The risk level determines what kind of protection the policy owner needs and how frequent the person will make a claim. The risk level is determined by a lot of factors. One good example of these factors is the age. Vehicle insurance companies often give higher rates to drivers within 18 to 24 years old because they are considered as high risk drivers. Reliable statistical studies confirm this by showing that drivers belonging to this age group have the highest number of citations due to traffic rule violations and accidents. That’s why insurance companies give them high rates because they think that these drivers will definitely make frequent claims.