The media may be trying to convince the public that the recession is nearing its end, but every day more people are losing their jobs, their homes and their way life. These changes in circumstance have people desperate to find ways to cut costs and live more simply. Unfortunately, some common sense choices regarding a person’s finances may inadvertently affect their car insurance policies as well.
Georgia car insurance rates are based on a variety of factors. Understanding what elements go into determining a person’s auto insurance quote will keep drivers from making a costly mistakes in regards to their insurance premiums. The Georgia Insurance Department has a document listed on their website detailing things to take into consideration that may cause someone’s car insurance to either increase or decrease.
In order to curb expenses, Georgia residents are getting creative with how they save money. Some residents are relocating in an effort to save money on living expenses. Others are forced into looking for a new place to live because of foreclosure. Either way, these individuals are probably not taking into consideration what a relocation could mean for their insurance rates. Some neighborhoods are considered more of a risk than others, which would drive up the cost of a person’s car insurance.
Moving to a low income neighborhood is better if there is garage parking as street parking may also cause a hike in insurance costs. Relocating out of state means that drivers will have to look into completely different insurance minimum requirements, insurance rates, and responsibilities in a collision. It is important that motorists become informed about car insurance in their new town before packing up and moving out.
A bad economy can really do a number on a person’s credit score. What most people don’t realize is that car insurance companies utilize credit reports to determine the level of risk in their policyholders. Allowing a credit score to drop can result in an increase in car insurance rates since the driver will be seen as more of a risk.
It is not all doom and gloom, there are ways to improve a person’s car insurance costs as well. Some people have found ways to work from home, telecommute or use alternative transportation to save costs. Driving less is actually a benefit to car insurance companies so be sure to contact the company and ask about their low mileage discount. Downsizing to a more affordable car often translates into better insurance rates since these cars cost less to repair and operate.