One of the best ways to enjoy good auto insurance rates is to be a good driver. This involves, among other things, avoiding accidents at all costs. Here are some of the specific ways in which maintaining an accident-free driving history can help you enjoy low rates.
It is common for auto insurance rates to hike after you have been involved in an accident. This makes sense because your driving history is among the factors your insurance carrier uses to gauge your future risk of an accident. The more accidents you have been involved with, the higher your accident risk is and the higher your rates will be.
Fortunately, your rates may not always rise if you are covered by an auto insurance carrier with an accident forgiveness program. Such a program 'forgives" you for an accident so that your rates don't rise even after you have been involved in an accident. Depending on your auto insurance company, here are some of the requirements you may have to meet to qualify for accident forgiveness:
- Maintain accident-free driving for some time and automatically qualify for the program
- Be of a certain age; some companies don't offer accident forgiveness to young drivers
- Buy the program and qualify for it immediately
When you buy car insurance coverage, you also have to set a deductible for it. The deductible is the amount of money you will be expected to put up for car repairs before your auto insurance company pays the rest. Usually, the higher the deductible is, the lower your premiums will be because you are reliving your auto insurance carrier some of the risk.
Fortunately, there are auto insurance companies that can lower your deductible without hiking your rates. This is known as the vanishing deductible program where your insurance carrier lowers your deductible by a certain amount (without an increase in rates) for each accident-free year you attain. For example, your deductible may be reduced by $100 every year you drive without an accident.
Lastly, driving without causing an accident may also reduce your auto insurance rates. This is because all insurance companies are actively working to reduce auto accidents; after all, getting involved in an accident is a disadvantage both to you and to your insurance carrier. Therefore, auto insurance companies usually promise accident-free discounts on rates for drivers who go a predetermined number of years without causing accidents.
For more information, contact a company like Affordable Insurance.