Car insurance rate and premium determinations may seem a bit mysterious. Why else would you come up with a different auto insurance quote at each car insurance provider? Each company has a different formula for determining how much you will pay for your auto insurance policy, but by paying attention to these 10 tips, you can help make sure that your car insurance premium is as low as possible.
Lower Car Insurance Rate Tip #1: Get Married
Married people generally pay lower rates than do their single counterparts of the same sex, age and geographical location. Why? Perhaps because your status as partnered says that you are dependable and will therefore drive the speed limit and follow other traffic laws, decreasing your chances of being involved in a car accident. Who knows. But if it can lower your car insurance rate, then it’s a good thing.
Lower Car Insurance Rate Tip #2: Do Well in School
High school and college age drivers have their age as a strike against them in terms of car insurance rates. One way to offset the scary statistics about the number of accidents incurred by new drivers is to submit your good grades into evidence. Many car insurance providers offer discounts to new drivers who have high grades because it shows a level of responsibility that bodes well for the safety of your driving future.
Lower Car Insurance Rate Tip #3: Move to the Suburbs
If you live in an urban area, you’re going to pay more for your car insurance policy than someone living in the suburbs. High rates of congestion, high theft and crime rates, and high incidence of car accidents mean that you are more likely to file a car insurance claim if you live in the city. Move to the suburbs and decrease your odds of an accident and you’ll decrease your auto insurance premiums at the same time.
Lower Car Insurance Rate Tip #4: Buy a Different Car
Different types of vehicles will impact your car insurance rates differently. In general, the heavier and larger the car is, the less it will hike your auto insurance premium because the damage it will incur in a car accident will likely be less expensive than for a smaller, lighter vehicle. In the same way, expensive cars are more expensive to fix and therefore more expensive to insure. Keep that in mind if you want your car insurance premiums to be lower.
Lower Car Insurance Rate Tip #5: Improve Your Driving Record
If you have a history of car accidents and various car insurance damage claims, your potential auto insurance provider will assume that you will only be filing more car insurance claims with them and charge you accordingly. You can’t change the past, but you can show that your intent to make the future different by enrolling in driving school and working hard to drive safely. Consider not filing a claim for any incident that costs less than your deductible would be and keep your car insurance rates lower.
Lower Car Insurance Rate Tip #6: Buy Multiple Insurance Policies With One Company
If you buy your homeowner’s insurance and your auto insurance through the same company, you’ll like qualify for discounts on both policies, not just your car insurance rates!
Lower Car Insurance Rate Tip #7: Install Anti-Theft Devices on Your Car
Showing that you are working to keep your car safe and thus limit the chances that you will file a claim due to theft or break-in by installing an anti-theft device in your car. Most companies are very specific about the type of anti-theft devices that will qualify you for their car insurance rate discounts, so ask your insurance agent before you make a purchase.
Lower Car Insurance Rate Tip #8: Park in a Garage
In the same way that an anti-theft device shows that you’re protecting your car, so too does parking your vehicle in a garage as opposed to on the street. Hit-and-run damage is common for cars parked on the street, so by keeping your vehicle tucked safely away while you’re at work and at night, you’ll likely get lower car insurance rates, especially if you’re an urban dweller.
Lower Car Insurance Rate Tip #9: Mature… Or Grow Younger
Unfortunately, ageism is an issue when your auto insurance rates are determined. Drivers under the age of 25 and over the age of 65 are going to pay more for their car insurance. Try for age-appropriate discounts (good grades discounts or driving school if you’ve had incidents) and lower your car insurance rates in other ways if you’re in an expensive age bracket.
Lower Car Insurance Rate Tip #10: Avoid Gaps in Coverage
If during your driving history you have been without car insurance-even if you were also without a car at those times-you are going to suffer for it when it’s time to buy a new policy. Make sure that your auto insurance payments are always up to date and don’t let it lapse and your car insurance premium prices will be lower because of it.
Insurance Information Institute
U.S. Department of Transportation
Consumer Action: Auto Insurance