When you are paying a lot of money on automobile insurance you may be stressed to call your insurer when you have changes in your circumstances. Many motorists believe that each time they call the firm and tell them about alterations required they will end up paying some more money. This way of thinking doesn’t do you any favors for several reasons.
Firstly, you will have to communicate with your carrier when there are material changes in your life. These changes can be additional drivers in your household, change of address, work, new car or making modifications on old one. These are all significant enough changes that will require companies to recalculate premiums. So, you are right that it is likely premium will be adjusted.
Nonetheless, this doesn’t mean that you will always be the loser in this process. In many cases you may end up saving money especially the changes are positive. People usually progress in life for the better and their living conditions improve. All these good things that are happening in your life can mean further savings on insurance costs. Let’s have a look at a few of these opportunities that land you lower rates.
For example, you may buy a home in a better part of where you live that is usually considered improvement. You can two different Discounts in such cases. First of all being a homeowner can mean you get charged lower rates. Companies like people with their own home and consider them to be low risk.
Secondly, you get discounts for living in a better area. The reasons are that the crime may be lower and it is less congested. Your zip code is highly important in the premium calculations. Automobiles are usually driven around the neighborhood and they are parked at home at night most of the time. These are the factors that affect the risk level of an applicant and therefore the costs. Having a garage or driveway to park your vehicle safely is another consideration and the discounts can be significant if you have an expensive auto.
Change of job is another one. Generally these changes are upwards. There are a lot more people who get promoted than demoted. A better job means better pay. But the real difference may be because of the location of work. The closer you work to your home the lower your yearly mileage is going to be. And the shorter commute will mean less chance of an accident. When these changes taken into account you may see your premium is coming down. The savings can be even more significant when you start working from home or partly working from home. If you are not leaving home you are not driving and your car is sitting safely at your driveway.
These are only few changes in your life that can mean savings on vehicle insurance. So, do the right thing and communicate with your insurer properly. They have a right to know. And being honest with them will set your mind at ease. They will have no reason to refuse a future claim if they know everything about you.