Car insurance in one form or another is required by most (not all) states. Those who are required to have automobile insurance must realize that insurance rates and premium payments are not the same for everybody. What lowers car insurance rates however will be of interest to most consumers since nobody wants to pay more than they have to for cover. Of course, those without appropriate or enough insurance and those not required by the law to have insurance, will be required to compensate for damage, injury or death they may cause. So while not having car insurance might seem like a great saving, it can be a very expensive mistake if you find yourself involved in an accident. This article will discuss how a consumer can minimize insurance payments effectively and efficiently. Do bear in mind that the consumer to a certain extent, has control of the premium payments. Keep Your Credit Ratings above Median Credit ratings are determined by credit bureaus. The former generates credit reports and scores that determine the credit ratings of a consumer. The proper term is "ratings", in the plural because each credit bureau (and there are a few) have their own credit rating based on their own credit report and credit score of a particular consumer. To put things simply; higher credit ratings can be what lowers car insurance rates. The best credit scores are those above 720 FICO and the worst are those below the federal and state median, 650. Tip - maintaining above average credit scores is simple; the consumer only needs to follow two simple rules: 1. Always pay your debts on time and in full. 2. Check your credit reports annually using your free annual credit check and dispute any information that is false or obsolete. Keep Your Driving History Positive The more negative information relating to driving history that you have, the higher your premium payments. Therefore, the best way to keep car insurance premium payments at a minimum is to follow the rules of the road. Negative determinants include but are not limited to previous DWI/DUI convictions and traffic violations. Flex Your Coverage The type of coverage as well as the extent of coverage determines the total insurance cost as well as insurance premiums. The best way to maximize coverage and minimize premiums is to include or increase the coverage of risks you are prone to encounter, while dropping cover for risks that you will never be subjected to. For example, if you live in the dessert with little chance of flooding, you may want to drop the flood/inundation coverage. If you always keep your car in a garage, then theft coverage maybe minimized or totally dropped. Your Automobile The make and model of your automobile is also an insurance quote determinant. Below are a few details to remember: 1. The older and less maintained the automobile, the higher the insurance rates. 2. The harder it is to find and the more expensive the automobile make and model parts, the higher the insurance premiums. 3. SUV's and luxury cars have higher insurance premiums.
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