Save Hundreds on Car Insurance Premiums
Although many car insurance carriers advertise that you can save hundreds by using them, there are ways that you can lower your car insurance premium by hundreds of dollars using tricks of the trade. Car insurance is like any other bill – the more you know about the product, the more you can save.
Your age, driving record, county of residence and type of vehicle are all factors that make up your car insurance premium. Rates for women decrease at age 21, while rates for men do not lower until age 25, in most states. This is because men are considered to be “high risk” drivers until they reach 25, which is based on vehicle accident statistics.
Purchasing a car that has a positive crash-test rating and one with low mileage can help reduce your car insurance premium. It also helps if you have managed to avoid accidents and traffic tickets for the last five-to-ten years.
The more car insurance you carry, the easier it is to save. Many insurance companies offer discounts to drivers who carry added coverage from month to month. This can include uninsured motorist coverage, collision and comprehensive coverage. Also, if you are able to combine your home insurance, life insurance and other types of coverage with one company, you might be eligible to save.
Drivers who wish to save even more can increase their deductible, allowing them to save several hundred dollars. The only problem with this scenario is that if you do get into a wreck, you will be liable for up to double your original deductible. Good drivers, however, who drive very little might see this as a fair trade for saving on car insurance.
A good credit history will lower your premium because car insurance companies will see you as less of a risk. Paying your bills on time and avoiding collections will save on car insurance when they perform a credit check. You can beat the credit-check fear by paying your entire premium up front, rather than monthly for six payments. Every small savings counts.
Drivers who travel fewer than a set amount of miles each day, week or month can qualify for low-mileage discounts on car insurance. By commuting to and from work using public transportation, taking a plane or bus on vacations and avoiding unnecessary road trips in your car can certainly lower your car insurance premium. This is because the less you drive, the less likely you are to get into an accident and force your car insurance company to shell out money.
Most car insurance companies also offer a version of the “Safe Driver” discount, which applies if you haven’t had any accidents or traffic violations in the last five years. Driving defensively and carefully will decrease your risks of getting blemishes on your record.
The following factors may also lower your car insurance rates:
– Student Discount
– Car Alarms & Anti-Theft Devices on Your Car
– AAA Membership
– Anti-Lock Breaks
– Automatic Seat Belts
– Airbag Systems
Your rates might also decrease the longer you are a customer with a particular car insurance company.
