Many motorists consider auto insurance a necessary evil. While drivers don't want to be out on the road without insurance, many lament paying such a high price for security.
But automotive insurance need not be so expensive. In fact, many drivers on the road today could save a considerable amount of money if they took some time to explore their options. While it might be easier to simply stick with an existing policy, some simple comparison shopping might result in a much more affordable auto insurance bill. But before you begin shopping for a new policy, it may help to consider a few factors that might decipher just how affordable your next policy will be.
* Driving record: Drivers who recently received a ticket or another citation likely won't find a more affordable auto insurance policy awaiting them. But if points on your license from a past speeding ticket or citation are about to disappear, then wait until they're officially off your record before shopping for a new policy. The fewer points you have, the less you're likely to pay for auto insurance. So be patient if points are about to vanish or be proactive and find yourself a better deal if points recently came off your record.
* Personal finances: Your individual credit score will influence how much you pay to insure your vehicle. If your credit rating is strong, then this should help you find a more affordable policy. But if your credit rating has recently faltered or you currently have a significant amount of debt, then work to improve your credit score and reduce your debt before shopping for a new policy.
* Ownership status: Many drivers lease or finance their vehicles. In such situations, the lending institution typically mandates drivers carry full coverage. Drivers who lease have no wiggle room on their policies, but those who are financing and are close to paying their vehicle off can likely lower their coverage considerably once they have paid for their vehicle in full. Once you are no longer making payments on the vehicle, you can, if you so choose, adjust your policy so you aren't paying for full coverage. This should save you a considerable amount of money. But before adjusting the policy, shop around among insurance providers and see who gives you the best deal. You might find the most affordable policy is offered by a different company from the one you are currently using.
* Location: Where you live also influences the cost of your auto insurance. If a move is in your not-too-distant future, you might find insurance is more affordable at your new location than your current one. Rural areas and the suburbs tend to have fewer drivers on the road than more densely populated urban locales, so insuring a vehicle in such areas is often more affordable than insuring a vehicle within city limits. If you will soon be leaving city life behind, then you might want to wait until you have moved to buy a new policy or to renegotiate an existing policy.
* Employment situation: While your employment situation won't have too big an impact on the cost of your insurance, finding a new job that's closer to home, which remains a goal for many professionals, may just lower the cost of your auto insurance. Insurance companies consider a host of factors when determining the cost of each auto insurance policy, and the distance between a driver's home and his or her office is one of those factors. If you're in the midst of a job hunt that you hope will end with a new job and a shorter daily commute, then you might want to wait before signing the dotted line on a new auto insurance policy.
An adequate insurance policy gives motorists peace of mind as they traverse the nation's roadways. Finding a more affordable policy is a goal for many motorists, who must consider several variables before they begin the search for a new policy.