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Are you paying too much for your auto insurance policy?
Sure, just about all of us want to know how to pay less on our bills. But few consider that there are ways to save on auto insurance.
Instinct might kick in and tell you that lowering your liability limits to the state minimum will result in the cheapest premium. However, this is furthest from the truth and can put you and others at a great risk of not having sufficient coverage in the event of an accident. Here are seven elements of your auto insurance bill that greatly impact the price you pay. 



We will start with the most obvious:

 Reason number 1: Your driving record
Companies look at a driver with clean records as someone who is far less likely to cause an accident and thus, file a claim. On the contrary, having multiple tickets and violations give the appearance of careless or reckless driving. A speeding ticket of only 10 miles per hour is enough to raise your rate 10 percent or more in the state of Illinois. Once the guilty conviction is processed your insurance company will find out about your ticket when processing your next renewal and most of them will process a surcharge on your premium for the next 3 to 5 years. 

 

Reason number 2: Your age
Drivers younger than 25 will end up paying a lot more for auto insurance. Teen drivers end up faring much worse when it comes to finding adequate coverage. While younger drivers tend to log fewer miles every year, they are responsible for causing more accidents and damage.  

Reason number 3: Your deductible
Most people will automatically choose the lowest deductible possible and while this sounds like it makes sense, it may not always be the best option for you. Deductibles and premiums have an inverse relationship and the lower the deductible you choose means the more you have to pay up front in your premium. 

Reason number 4: The car you drive
Some cars are valued for their safety. Other cars are rated for their rarity or performance. Sleek and classical cars will end up striking your wallet after the dealership when it comes to paying the insurance. Certain high performance or luxurious cars tend to have higher maintenance and repair costs and this will surely reflect the insurance costs used to cover some of these expenses.
 

Reason number 5: Frequency of payments
This one may not be so obvious, but paying monthly will cost you more money in the long run. Companies will lower their total insurance premium depending on how often you choose to pay whether it is monthly, quarterly, two-pay, or one payment that is "in full". 

Reason number 6: Your credit score
You may never have realized this but your credit score can sometimes cause the greatest impact on your insurance premium. When determining a customized price based on your age, location, and prior driving record, insurance companies will also look at your credit score. Having a great credit score can save you some serious cash.



Reason number 7: You require SR-22
An SR-22 means you have committed some serious violations. In addition to the filing fee that an insurance company will have to process for you to receive the SR-22 certificate, you might also see your premiums increase due to your prior record. 
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