Looking to reduce the cost of your Wisconsin auto insurance premiums? You can save money on car insurance by learning what kinds of factors affect your premiums. With this information you can eliminate or reduce factors that can increase the cost of your auto insurance policy, as well as optimize those that will lower your premiums.
The level of coverage you select will be a significant factor in determining what your Wisconsin car insurance policy will cost. Liability coverage is the lowest level of protection. Mandatory liability insurance is not yet required by law in Wisconsin, but is expected to be by June 2010. In the interim drivers, are still held financially responsible for injuries or property damage resulting from an accident in which they were at fault. In the absence of cash reserves set aside for this purpose, having liability insurance is advised.
Collision insurance provides additional coverage with regard to injuries and property damage that are the result of an automobile coming into contact with another object or person. Comprehensive insurance covers expenses that are incurred from everything but a collision. In the absence of mandatory liability insurance, underinsured or uninsured motorist insurance coverage might be helpful. This type of insurance is designed to cover costs when the responsible party has either insufficient coverage or no coverage at all. However, your coverage selection is not the only thing that affects your Wisconsin auto insurance premium.
Insurance fraud can also increase your Wisconsin car insurance rates. Insurance companies pay out billions each year as a result of fraudulent claims and then pass those costs on to their policyholders in higher premiums. Consult the Wisconsin Department of Insurance for auto insurance fraud statistics. Fraud can be classified as hard or soft. Hard fraud pertains to instances where a person devises a plan to incur some kind of loss or damage that is covered under their policy so that they can collect payment. Some instances of hard fraud would be staged accidents and arson. Reporting any instance of fraud to the proper authorities can be done anonymously and will make occurrences of fraud less frequent and thereby lower your premium. Soft fraud refers to things like overinflating claims; this costs us all a lot of money.
Other ways to reduce your premiums would be to increase your deductible or piggy back your auto policy onto your homeowner's policy. You might qualify for a discount if you are accident free, drive less than a specified amount per year, are a student with a B average or better or if you are a senior citizen. You can improve your driving record by taking a defensive driving or other type of course to erase a minor citation. You may want to choose to drive an auto that is not considered small or fast, has a good safety rating, a low theft rate and is not expensive to repair. You may want to improve your credit score by having errors repaired.
Determining the level of coverage you need, reporting fraud, and taking advantage of available discounts and reducing your risk factors will help you chip away at the cost of your Wisconsin car insurance policy. In the end, it pays to shop around. You should get car insurance rate quotes from several companies so that you can be sure that you have the most affordable insurance premiums possible.