Are you sitting behind the wheel of a BMW M3, a C-Class Mercedes Benz or a new Bentley Continental GT? The car you drive says a lot about you and your finances. Some people use their vehicles as a roving marquee of their status, and others just use their car to get from point A to point B. If you are a consumer who takes pride in your ride, you may also be susceptible to high auto insurance rates.
If you drive one of these exemplary, high-performance, hard-working-engine vehicles, and you are a male under the age of 30, your auto insurance rates will go through the roof. Auto insurance companies peg any young male driver in an expensive sports car as one of their higher risk clients. Fortunately, there are a couple things that you can do to counteract the impending charges.
First, if you drive an expensive vehicle, you can see your insurance rate decrease if you take part in certain programs, such as participating in carpooling programs, using city transportation like the bus or railroad, or riding a bike. This is because most auto insurers will check to see how many miles you drive your car annually in order to decide how much you will pay for your insurance premium. If on average you drive less than the other drivers in your area, then you may be subject to cheaper insurance premiums.
Also, your credit score can play a factor in your auto insurance rates. Insurers look at your credit score in order to determine your credit worthiness and to set the amount that you will be required to pay in monthly installments. If you have a good or excellent credit score, then you are seen as less of a risk in the eyes of auto insurance issuers and therefore you will pay lower insurance premiums. Remember, just garnering a high salary doesn’t automatically mean that you will pay a lower insurance premium or that you are a low-risk client. It is true that your income does play a factor in your credit score, but your actual credit score weighs heavier than your income when being assigned an insurance premium. Another tip to keep the insurance on your luxury vehicle low is to protect it from damage at all costs. This means covering it at night or whenever possible and practicing safe driving techniques, such as driving at the speed limit and staying out of accidents.
Also, if you are looking to save money on your expensive auto insurance, a Pay-As-You-Drive system (PAYD) may be beneficial for you. PAYD systems have begun to be offered by auto insurance companies like State Farm, Allstate, and Progressive. The new type of auto insurance utilizes high-tech technology to monitor the driver’s habits in order to offer them personalized auto insurance at a cheaper rate. Progressive is advertising discounts of up to 30 percent if a customer switches to their Snapshot PAYD program. Average discounts from switching auto insurance plans range from 10 to 15 percent. PAYD programs can be the best option for consumers looking to cut corners on their auto insurance.
Furthermore, if you have an expensive car, don’t skimp on insurance. Make sure to get full coverage. Full coverage will give you the protection you need to keep your car looking brand new if you are ever in an accident. Getting full coverage can be expensive as well, but the cost can be reduced by keeping a clean accident record and attending driving schools whenever necessary. This coverage, combined with a good credit score, should keep your insurance premiums to a minimum.
What’s the point of having a nice car if you can’t show it off? If you roll off the lot with a luxury vehicle, keep the vehicle looking like new by making sure the vehicle is adequately insured in case of any unforeseen circumstance.