Many factors play a part in determining how much a driver will have to pay for their car insurance premiums. These include the age of the driver, the location where the car is kept, the type of car being insured and the average amount of miles driven each year. While drivers may not be able to change these factors, there are ways to find cheaper car insurance premiums. In fact, smart drivers can take advantage of discounts offered by auto insurance companies.
Tip 1: Driver Education
Drivers who participate in driver education and defensive driving classes are usually offered discounts by insurers. They know that drivers who have taken these classes are less likely to be involved in accidents. Drivers who are under the age of 25 get the highest savings from these classes.
Tip 2: Insuring Multiple Vehicles
If several members of a household have vehicles, a large discount may be available by insuring them all on the same policy. Most insurers offer multiple car discounts, which can make premiums on individual vehicles much lower.
Tip 3: Raising Deductibles
Collision and comprehensive insurance policies are expensive and some drivers can get cheaper car insurance by raising the amount of their deductible. Many car policies have a $500 deductible and raising the deductible to $1000 can create substantial saving on the premiums.
Tip 4: Reviewing Coverage Needs
Car owners should weigh the cost of non mandatory insurance coverages like collision and comprehensive at least once a year. The cost of the premium should be compared to the value of the vehicle and non mandatory coverage should probably be dropped on cars with values under $3000.
Tip 5: Multiple Policies
Many auto insurance companies also offer insurance on homes, boats, motorcycles, and RVs. By purchasing other insurance policies from the same insurance company, drivers can realize discounts that result in cheaper car insurance.
Tip 6: Buy a Safe Car
Insurers offer discounts on cars which have special safety features like anti-lock brakes, rear view cameras, and collision alert systems. Family cars like sedans usually get cheaper car insurance than sports models because they have more safety features.
Tip 7: Exclude High Risk Drivers
Car owners may have the option of excluding drivers who live in their household from the insurance policy. Children under the age of 21 and family members with poor driving records can raise premium rates and car insurance may be cheaper if they are excluded.
Tip 8: Continuous Car Insurance
If a driver cannot show proof of continuous car insurance, his premiums will be higher than they are for a driver who has continuous coverage. Even if a driver is prevented from driving for a short period, car insurance should be maintained, allowing the driver to get cheap car insurance rates.
Tip 9: Clean Driving Record
Drivers who have no accidents and no moving violations get cheaper car insurance than drivers with speeding tickets or other driving citations. Maintaining a good credit rating can also save drivers money on their car insurance.
Tip 10: Comparison Shop
Finding cheaper car insurance may require comparing rates of different insurance companies. When comparing rates, make sure that the policies are the same. Not all policies have the same provisions and cheap car insurance may have restrictions not found on standard policies.
The car insurance industry is highly competitive and savings are available to drivers who are willing to take some time to consider making changes in their driving patterns, vehicles, or coverage needs. Comparing the rates of different insurance companies is incredibly easy. In fact, there are some online services which provide the rates of different car insurance companies to drivers who sign up with their websites. A little time can save a lot of money when car owners find cheaper car insurance.