If you have ever done an online quote for car insurance, you know there are many options available to you. There are great features that you can choose to add to your package. Unfortunately, it can get quite expensive to the average individual’s monthly budget. Your state requires a minimum amount of car insurance in order to put the car on the road. Sometimes that is all that someone can afford, which can be a risky maneuver. This article will teach you how to get cheaper auto insurance, without compromising the quality of what you are paying for.
- 1 High Cost of Insurance
- 2 Insure Multiple Cars/Drivers
- 3 Qualifying Factors to Get The Multiple Car/Driver Rates
- 4 Anti-Stealing Alarms
- 5 Avoid Traffic Violations
- 6 Driving Defensively
- 7 Look at Different Companies
- 8 Get your Credit Rating Raised
- 9 Take Buses and Taxis Whenever Possible
- 10 Make Larger Payments on Your Premium
- 11 Higher Deductibles
- 12 Are You Retired?
- 13 Be Aware of Too Cheap
- 14 Different Ways For Teenagers to Save
- 15 Insuring Young Drivers
- 16 The Car you Choose Matters
- 17 Check for Add-Ons You Don’t Need On Your Policy
- 18 Drop Coverage That You Doesn’t Need
- 19 Make Sure the Vin is Correct
- 20 Discounts Due to Where you Work and Other Affiliations
- 21 Different Places in the Country have Different Rates
- 22 Ask Your Agent Questions
- 23 Make Sure Your Policy is Accurate
- 24 Never Drive Uninsured
High Cost of Insurance
Everything in the United States has gone up in price. Cars have become much more expensive in the recent history because of the high cost of living. Insurance rates have skyrocketed throughout the United States. Everyone could use tips to get cheap car insurance. However, there are ways to drop your monthly expenses if you are willing to put a little work in and follow some guidelines.
Insure Multiple Cars/Drivers
If you own more than one vehicle and are getting quotes from an auto insurance company, you may be able to get lower rates by putting all of your cars on one plan. This is a way how to get cheaper auto insurance. Also insuring more than one driver will get you a better rate as well. They may offer you a multiple driver/vehicle rate. This is a well-known way to lower your rates but if you read on, there are many more secret ways to save money.
Qualifying Factors to Get The Multiple Car/Driver Rates
To get the multiple driver/vehicle rate you generally need to be related by marriage or birth. You also need to live in the same place. There are ways around this, however. If you own a vehicle with another nonrelated individual, that will also qualify you for insurance. If you own other insurance policies, like boat, renters, life or home insurance, choose a company that rewards you for each additional policy that you buy.
If you are willing to buy a good alarm system for your vehicle, you can save on your premiums. Most insurance companies offer significant discounts to make sure that your car isn’t reported stolen and they have to foot the bill. This is one of the best ways how to get cheaper auto insurance. You may drop your premium by a few percent by doing something that will benefit you regardless of the savings you will incur.
Avoid Traffic Violations
If you have multiple traffic violations within a certain length of time, your insurance rates will skyrocket. Driving cautiously, leaving home earlier and not running stop signs and red lights will lead to much lower premiums. The more points you have the higher your insurance is. No one wants to insure a reckless driver who frequently gets stopped by police.
If you look around online, the Motor Vehicle Department in your State has defensive driving classes that you can take for a 5-10 percent discount off or your auto insurance. It’s one of the best ways to get cheaper car insurance. If you have a number of points on your record, it can reduce your premiums. It is important to ask insurance companies prior to taking the class to make sure that you qualify.
Look at Different Companies
If you are in the process of renewing your policy, look around at various insurance companies and see what they can offer to you. Also check once to twice a year to see if there are any deals going on elsewhere. You have the right to choose whichever company you want so don’t feel guilty about leaving your current insurer if you can get a better deal elsewhere.
Get your Credit Rating Raised
Some insurance companies, but not all check the rating of your credit. They feel that the type of individuals that make sure to keep their credit rating high will be more cautious drivers overall. It may sound silly but to the companies insuring your vehicles, it’s a logical point.
Take Buses and Taxis Whenever Possible
You will be asked how many miles you drive per year. How far away you work from home impacts what you will pay. If you have a long drive to work each day, your insurance will be higher. They will ask you how much you will be driving the car. If you live in an area that has mass transit as an option, you can cut your miles considerably by using it as much as possible. This is one of the best tips to get cheap car insurance. You need to drop your miles significantly in order to qualify for the discount.
Make Larger Payments on Your Premium
If you are paying a lot of money each month for vehicle insurance, there are ways to lower your car insurance by paying up front. You can make payments either monthly, quarterly, every 6 months or yearly. If you choose to pay in full, you will be charged less. Monthly payments cost more. It’s not well known but paying it all off at once is a huge saving to your pockets. Your insurance agent will enjoy not chasing you to pay the bill and should reward you handsomely for it.
When you get insurance for your vehicle, in general, you pick what your deductible is. This is how much you personally pay out of your own pockets before your insurance company of choice pays for damages incurred during an accident. It is usually between $250-$1000. The more you are willing to shell out if an accident occurs, the less your payments will be. It depends on the company you are dealing with So you need to ask if it is worth it.
Are You Retired?
In the area where you live, check to see the age in which you can legally retire. Depending on that, if you qualify, you may get cheaper car insurance from certain companies. They do this because they tend to spend a lot less time commuting places. When you aren’t working, regular daily mileage doesn’t come into play. Many people don’t realize that they can save money once they retire. You need to go talk to your insurance company personally to see how much of a discount that they can offer you.
Be Aware of Too Cheap
If you see a good deal, check it out, just be sure that they are a decent company that can back up claims. Look at companies that rate insurance companies like A.M. Best to see how they rate. Also, read what the policy covers in the fine print. If your insurance company goes under, there goes your coverage.
Different Ways For Teenagers to Save
On of the best tips to get cheap car insurance for teenagers and college students who drive is getting the best grades you can in school. Insurance companies assume that kids and college students who get good grades will be more cautious drivers than their failing schoolmate counterparts.
Insuring Young Drivers
One in 5 young drivers wrecks their vehicle within the first year of getting their permit and/or license. The rest of the younger responsible drivers get a bad rep, but unfortunately even they get charged for it. Rates are based on research done on younger drivers as a whole. They are twice as likely to claim an accident as their older counterparts. As stated before good grades help but can’t erase all of the costs. They can do things to cut costs, however, like take drivers education or something called a Pass Plus class. It may also be called a 6-hour course. You can also be insured under your parent’s insurance, but you bought the car and are the main driver, you are responsible for carrying your own automobile insurance. If you are caught as the main driver on your parent’s policy and it’s actually your car, you can be accused of “fronting.” This is unacceptable to companies and they may cancel out your claim if you are found to be the main driver of your vehicle and you are using your parent’s insurance to save money.
The Car you Choose Matters
The car that you drive can impact your premiums. If you get a brand new expensive truck with all the bells and whistles, it will cost a lot more to carry insurance on than an older commuter vehicle. Older vehicles cost less to fix as the parts are cheaper. Getting an older car is one of the ways to save on car insurance.
Check for Add-Ons You Don’t Need On Your Policy
There are so many insurance companies out there now that companies are offering many different add-on packages to sweeten the deal. It sounds great to get insurance that states if you get into an accident that they will give you the value of your car. It’s not the value of it when it was new but at the time of the accident. That is something you need to be aware of. Some coverage you may not want or need, so ditch any unnecessary things you can live without. These perks can be put on your policy without you even knowing, so look carefully.
Drop Coverage That You Doesn’t Need
This you should only do if you are driving an old car that is not worth much. If you have a vehicle that is only worth $1500 and collision coverage costs you $750, you won’t be getting much if the vehicle gets in a wreck compared to what you are putting into premiums. If you have a car that is worth more than that, then getting rid of collision may be a dangerous prospect. Speak to your agent before deciding this.
Make Sure the Vin is Correct
Vehicle Identification Numbers are long. Even if you are one number off, your quotes will be incorrect. You can get charged more for the VIN of the wrong car. Double and triple check your VIN before turning it into insurance. It could show up as a completely different vehicle than the one you own.
Discounts Due to Where you Work and Other Affiliations
Almost all insurance companies give discounts based on affiliate groups that you are a part of. It may not be directly advertised so you need to speak to them directly about it. This could be a military discount, where you went to school, or where you work. This is a great way to get discounts on your auto insurance without having to change providers.
Different Places in the Country have Different Rates
This may be out of your control or an inconvenient factor to change, but location matters when it comes to auto insurance rates. If you are planning to move anyway and haven’t settled on a spot yet, it may be worth looking into getting cheaper car insurance. Of course, places like big cities are going to cost more with all the vehicles on the road at any given time so check out rates in the suburbs.
Ask Your Agent Questions
This article may not include every single personalized way to save money in your specific state or region. You need to have a conversation with the agency that is representing your insurance needs for more cost saving tools. There are definitely more great ways to save money on your car insurance.
Make Sure Your Policy is Accurate
Look through the policy and make sure all of the numbers add up correctly. Double and triple check the numbers. Personal information can get screwed up at times and a mistake could be expensive. A lot of these things are calculated online where there is plenty a room for error. Things like having your policy say you are single when you have been married for ten years can cost you money. The date of birth can also be in there incorrectly. If it says you are 18 when you are 55, that is a huge amount of money you are paying out unnecessarily! People trust documents to be correct but in reality, everyone makes errors. This is an easy thing you can do to try to lower the cost of your auto insurance.
Never Drive Uninsured
This may come as a surprise, but there are many accidents that occur involving uninsured drivers. This shocking trend has been growing steadily in recent years as more and more people are throwing caution to the wind and driving without any insurance at all. This is an incredibly risky maneuver as well as incredibly illegal. There is a regulation now that is called Continuous Insurance Enforcement. What is this exactly? It is a law that states you must have insurance on every vehicle you own, whether it is on the road and running or off. Insurance may be pricey but there are numerous reasons why you should have it. If you live in an area where there is many deer or other large animals, they can wreck havoc on your vehicle. The legal repercussions for driving uninsured can be hefty. You can expect a criminal record, losing the car, going to court and paying large fines. In some instances, you can even be jailed for it. Think twice before driving illegally and use these tips for cheap car insurance to help you get the best bang for your buck.