Have you been affected by an unexpected increase in your car insurance premiums? Or probably worse yet, have you tried adding a younger driver to your family car insurance policy? Sometimes your auto insurance premiums can be almost as expensive as your car loan payments. But you can take a few steps to lower that premium, sometimes by hundreds of dollars.
Don’t assume your old insurer is the cheapest.
Many people have been with an insurer for many years and cling to the idea that this company will give them the best benefits of some kind of loyalty. But most insurers have flat rates based on factors like age, driving history, zip code, and car type. These factors have little or nothing to do with how long a customer has been with a particular insurer. If you got a rate increase, or your rates seem too high, it may be time to look for a better deal from a company that wants to compete for your business.
Are you taking advantage of auto insurance discounts?
Just as auto insurers will increase rates for drivers in accidents, they will also be willing to extend discounts for factors they believe will make the insured person a safer driver. Some discounts are obvious, like one offered by many companies for approved driver’s education courses. But did you know that many companies even offer a discount for “green” drivers? They believe that the type of person who would invest in an environmentally sound vehicle would also be a more careful driver. You may not be aware of all the discounts available and should not wait for your old employer to offer them. Again, it’s in your best interest to let multiple companies compete for your insurance business.
Is it cheap to insure your car?
Some cars are just cheaper to cover. Companies keep statistics on things like the number of claims that specific cars tend to be involved in. This has nothing to do with you, as a driver, but with the car you drive. High-power cars will tend to be more expensive to cover, while quiet family cars will tend to cost less. Covering cars that appear to be stolen a lot will cost more, while cars that don’t appear as attractive to thieves will cost less.
Safety features like anti-lock brakes can get another discount. And while living in an area that tends to have a lot of stolen cars, or owning a car that tends to get stolen frequently can cause your premiums to go up, anti-theft devices can offset that cost. In other words, an insurer wants to see that you do everything in your power, including driving a safe and secure car, to avoid a claim. If you do that, you may be rewarded with lower insurance rates!
Shopping around
Face it. Each company has its own unique formula for calculating rates, and they are easy to use for different types of drivers. Where one company will offer a discount for a driver with an excellent credit score, another company will be more interested in attracting drivers who have excellent safety records. Of course, it’s always better to have both, but you can look for a company that rewards your strengths with better rates.
