No one particularly enjoys paying for car insurance. But it’s a necessary evil that keeps our roads civil, creates a feeling of responsibility and protects people from physical and financial ruin caused by an automotive accident. There are dozens of reputable insurance providers you could choose from, and all of them spend millions of dollars a year advertising their services, and the benefits they provide over the competition. Proper coverage isn’t cheap in any instance, and they’ll certainly look to get as much money as possible out of every motorist they cover. Your job is to save as much as possible, so you can afford a little bit extra to put towards bills or entertainment each month. Here are five ways to cut your auto insurance costs.
First of all, do your best to maintain a clean driving record. Almost all of the major insurance companies offer a discount for responsible drivers, and it’s often as much as 15%-20%. That adds up to some serious cash over time, and luckily it’s almost completely under your control. Just make sure that you drive safely, and if you can string together a couple of years without a ticket, a car accident or points on your license you will qualify.
You can also save big by showing a bit of loyalty to your insurance provider. That sounds silly, but think of it from their perspective. It always costs more to find and enroll a new customer than to retain a current customer. So if you have other insurance requirements, such as renter’s insurance, homeowner’s insurance or life insurance you will get a discount by giving the same company all of that business. In most cases you’ll receive something like 5% off your monthly premium. In addition, sticking with the same company for a significant period of time will also earn you a discount. It usually starts after you’ve been with one company for two years, and then will increase each additional year.
If you plan ahead you can cut your insurance costs by choosing a particular type of vehicle. Insurance providers are experts at risk assessment, and they carefully analyze your vehicle before making you an offer. Do a bit of research before you buy or lease your next car. Certain makes, models and years are higher risk than others. Either they are stolen more than other brands, or the owners of those vehicles seem to get in more accidents. Regardless, if you can avoid those vehicles you’ll save money.
Your vehicle add-ons will also affect the insurance rate. Any type of theft deterrent system will get an insurance company to give you a discount. An anti-theft ignition system, inclusion of Lo-Jack or even consistent usage of the club will help you out. Some insurers will also give you a discount if you drive a hybrid or fully electric car, or for having a modern anti-lock braking system.
Teenagers and young adults are almost always charged a higher rate than older people, regardless of their personal driving record. Young people get in more accidents than those who have been driving for some time, so the insurance company hedges their bets by charging you more. You’ll find this to hold true regardless of if you buy car insurance in Florida, California, Maine or anywhere in between. But you can get a discount if you are enrolled in school and maintain a solid grade point average. In most cases it’s a B or above. It will take some hard work, but the saved money will surely be worth it.