A lot of things need to be considered before making a major financial decision. How that decision may affect your insurance premium is usually not one of them. Most Americans do not even realize that car insurance can change based on financial moves. Here are five money decisions that can affect your premiums.
- A move can change your premiums, big-time. Moving to a higher crime area, losing garage space, or moving to another state can alter the amount of risk assessed to insuring an individual.
- Changing bikes. Always ask for a motorcycle insurance quote before you buy any new bike, new or used. Some sport bikes cost more to insure than cruisers or dual-sports. Paying off a motorcycle may allow you to increase your deductible and lower your coverage amounts, thus lowering your premium.
- Changing jobs can impact your premiums if your commute distance changes or you remain unemployed for an extended time.
- Changes in driving habits have changed many premiums. Americans are leaving their cars home more as gas prices increase, and opting instead for two-wheeled transportation options. Some companies are offering premium discounts based on less driving, but remember: if you are now commuting on your bike, the opposite trend will apply. You could be charged more for riding more often.
- Whether it is fair or not, your credit score affects your insurance premium. The lower your score, the higher your premium. Recent economic turmoil has raised many policy costs.
What seems like a simple money decision could have long term affects on your motorcycle insurance premiums. Before you finalize any plans, it might be wise to call your agent to see how your policy will be affected.