1. Comparison Shop
Finding the most affordable car insurance isn’t as hard as it once was. With so many different car insurance agents located all around the country, and some available exclusively online, your options are now more plentiful than ever before. The hard part is sorting them out in order to make sure you are getting the most affordable rates while still maintaining the exact amount of coverage you need.
The first thing you should do when looking for cheap car insurance is comparison shop. Consult your area’s local phone book, call or visit agencies near you, and remember to take notes regarding prices.
Next you’ll want to do some online research to find out your online car insurance options. Again, take notes and compare these to the notes you have concerning local agents.
2. Age-Based Discounts
Many younger drivers may not realize this, but your age is an important factor in setting the exact price of your auto insurance premium. You’ll typically see premiums lowered once you hit the age of 25, with discounts that can sometimes be as high as 20%, though other factors such as marital status and driving record are also taken into consideration.
The lowest premiums associated with cheap car insurance rates are typically given to drivers between the ages of 25 and 55. This age group is considered to be amongst the safest drivers on the road; certainly safer than teenagers and elderly drivers.
Depending on your insurance agent you may also see discounts as you age beyond 25. These discounts usually cease once a driver reaches their mid 50’s, though you may be eligible to receive other discounts on your car insurance at that time.
3. Move to a Lower-Crime Area.
The location of your home as well as your daily commute to the workplace is also taken into consideration by insurance agents when determining your car insurance premiums. This is a factor for a number of good reasons.
Individuals who live and park their car in wealthy neighborhoods are statistically less likely to have their car stolen, broken into, or damaged while it is parked overnight. Secondly, those who have shorter commutes to and from work are statistically less likely to be involved in an accident as they spend less time on the road than drivers with longer commutes.
This is why agents always make sure your home address and telephone number is correct. They use this information to determine if you live in a low-risk neighborhood or a high-risk area, and they compare with your employer’s information to determine how long of a commute you have back and forth each day. This will determine the exact rate of your cheap car insurance.
4. Consider Getting a Different Vehicle if Savings Warrant it
Did you know that insurance on a honda can be more expensive than insurance on a Jaguar?
The exact make and specific model of your vehicle is also used to determine how much you pay for cheap car insurance. This information is important to your insurance agent for a number of reasons.
The newer the car, the higher the repair/replacement cost.
On the other hand, First of all, some vehicles are simply more reliable than others. A used vehicle that’s been on the road for 20 years is not nearly as reliable as a brand new car. Though it may be more affordable to buy the older, used car, you may wind up paying higher insurance rates because of it.
5. Increasing Your Deductible Can Save You $100′s a Year
A deductible is the amount of money you are actually required to pay out in the event of an accident before your insurer will pay out on your claim. The amount of your deductible is also one of the biggest factors in determining your auto insurance premiums. In fact, the larger this deductible is, the less you’ll have to pay for coverage on a month-to-month basis.
Most drivers don’t realize this, but most agents will actually allow you to raise the deductible amount in order to lower your monthly rates. If you’re looking for cheap car insurance then this is a good deal for you; especially if you have a clean driving record as you may not ever have to actually pay this deductible. Ask your agent if they offer this service and, if they do, ask them how much you’ll be able to save by going with an increased deductible. The answer may surprise you.
6. Get Liability Only if Your Car is Older
Most drivers automatically opt for full coverage on their vehicles when in reality, not every one of us needs full coverage. If you’re looking for cheap car insurance, try to find a policy that covers only the areas you need and nothing more.
If you already have full coverage insurance, it’s never too late to ask your agent for a decrease in coverage. Towing fees and rental car fees that are covered by a policy may sound good, but if you have a second car then you might not ever need to use a rental car. Furthermore, some individuals may hold memberships elsewhere that grant them access to reduced towing or automobile service charges.
If your vehicle is valued at less than $1,000, you may also want to consider dropping your collision and comprehensive coverage. In cases like this it might not be worth it financially to repair your vehicle after a crash or accident.
This can save 50% in some cases.
7. Improve and Fix your Credit Score
Your credit score affects many different things in your life, not the least of which is your auto insurance rates. If you’re looking for cheap car insurance, one of the best things you can do is clean up your credit score; it may be costing you thousands of dollars annually on your car insurance payments.
Keep your credit score clean by paying bills on time, paying back loans on time, and avoiding maxing out your credit cards. Bounced checks and bank overdrafts can also hurt your credit score, not to mention your pocketbook as well.
You should also request a copy of your credit report on an annual basis, even if you know your report is clean. Identity theft is on the rise, and many innocent victims could have been spared if they only would have been monitoring their credit report more closely.
