Factors that affect auto insurance premiums

With the economic downturn still affecting a number of consumers, many have examined their budgets in search of items to cut. Eliminating auto insurance coverage would save many Americans hundreds of dollars a month, but few working consumers can afford to do without their vehicles.

But rather than cutting the expense altogether, some individuals may be able to at least reduce this financial burden. By understanding the factors involved in determining auto rates, car owners may be able to make slight changes to their lifestyles to reduce their monthly payments.

According to DailyFinance, a person's driving history and habits significantly impact the amount they pay in premiums each month. For example, people with numerous tickets and who have gotten into multiple accidents during the past three years will likely pay a higher rate than car owners with pristine driving records.

Consumers who drive less generally pay a lower premium than those who chalk up more miles because they are viewed as less likely to get into an accident, Carroll Lachnit, consumer advice editor for Edmunds.com, told the news source.

Another way people may be able to reduce their premiums is by improving their credit scores with credit repair. Consumers can challenge any questionable or problematic items that are unfairly reported on their credit reports. Some may choose to work with a credit lawyer to investigate and dispute these marks.