So how do you get the best deal on car insurance? We all know how important it is to have auto insurance, and you’ll be thankful for it if you get into an accident. But there’s a lot of factors that can affect how much your premium is and auto insurance rates. You don’t want to have to pay anymore than you should. By doing a little research, you can find out what exactly you need to do to get the best deals on car insurance.
What exactly affects your car insurance quote?
Age
Younger drivers tend to drive more recklessly and get into more accidents compared to older drivers. Insurance companies will usually charge more for teenagers and individuals under the age of 25.
Model Of Car
The type of car you drive is a huge factor in determining how much your auto insurance will be. The more expensive the car, the higher the insurance. Luxury cars are much more expensive to repair, so insurance companies will want to charge you a higher price. On the other hand, cars that have great security systems or are very safe will be cheaper to insure.
Gender
Women usually pay less for car insurance because data shows that women tend to drive less recklessly, get into less serious accidents, and have fewer cases of driving under the influence (DUI). For these reasons, most auto insurance companies will give better rates to women.
Your Driving Record
Your past driving record, like tickets and accidents you incurred, will affect how much your car insurance is. The more tickets and accidents, the more you’ll have to pay. This is important to keep in mind and to always err on the safe side while driving.
How Often You Drive
If you are driving a lot, your chances of getting into a car accident are higher. For that reason, insurance companies will look at how much you drive when determining your insurance rate.
Location
Depending on where you live, your car insurance might cost more or less. If you live in a high theft neighborhood, insurance companies will likely take that into consideration and charge you a higher price in the chance your vehicle gets stolen or vandalized. People who live in cities also usually have to pay more compared to suburban dwellers.
Now that you know what affects your auto insurance, what else can you do to get the best deal?
Shop Around And Compare Prices
Before you even buy a car, you want to do your research on car insurance. Like what’s mentioned above, different cars will have different costs for insurance depending on safety, price, and how old it is. It’s important to get at least 2-3 quotes on different cars you’re considering purchasing, so you can compare and find the best option suited to you. If you already own a car and are looking to switch insurance, you should still get a few quotes from multiple insurance companies. Take time to do your research. It’ll pay off in the end.
Increase Your Deductible
You can take a look at plans with a higher deductible, meaning that you pay more in the chance that you get into an accident. Plans with high deductibles generally will offer lower premiums, so you don’t have to pay as much monthly. However, if you do choose a plan with a high deductible, be prepared to pay the deductible if you do get into a car accident.
Keep An Eye On Your Credit
It’s always important to monitor your credit score closely. If you have a good credit score, insurance companies will usually offer you a better premium because you are a trustworthy borrower. Make sure you check your credit regularly, and pay all your bills on time.
Consider Dropping Insurance On Older Cars
If you have an old vehicle, it might be worth it to consider dropping collision insurance on that car. Collision insurance will cover the cost of damage to the car if your car hits another car or object. A lot of the times your old car is likely to be worth less than the deductible and the price of insurance you have to pay annually, so it might not be worth it to even fix. If you save money on collision insurance, you can use that money elsewhere, like on repairs or a newer car.
While there’s a lot of things to consider when buying car insurance, the most important thing to remember is to do your research. Don’t hastily get the first insurance you come across, but rather take your time to understand what factors affect your premiums and compare a few different options to figure out what’s best for you.
Resources:
1. https://www.iii.org/article/how-can-i-save-money-auto-insurance
2. https://www.nerdwallet.com/blog/insurance/car-insurance-basics/save-car-insurance/
3. https://www.iii.org/article/what-determines-price-my-auto-insurance-policy
