Buying a car is one of the two major purchases of your life, the other being a home. You’ll probably have the car for about 10 years, and you’ll use it more than any other asset you own. That being said, it’s also one of the few purchases you make that are vulnerable to damages. Hence, you’ll need some great insurance coverage.
Opting for insurance can take a lot out of your paycheck. If you enjoy getting the best deal, you have come to the right place. Continue reading below and you will see how easy it is to lower your car insurance monthly expense.
Best Ways To Lower Your Car Insurance
Car insurance in the US is mandatory in all the states, except New Hampshire. Hence, you’ll have to insure your car no matter which model or make you decide to buy. Besides it being mandatory nearly everywhere, having car insurance can be a real boon to the life of your car. With nearly 6 million car accidents occurring in the US every year, it’s a gamble not to have car insurance.
However, it is true that the average US citizen pays nearly $1500 per vehicle for car insurance. There’s got to be a way to do better. We did the research and as it turns out, there are many ways to lower your car insurance.
Here are the best ways to lower your car insurance costs in the US.
Do Your Homework
You should congratulate yourself for spending the time to read this article. You are doing more than most. This is one of the most important parts of getting insurance in the first place. Many people go for the first option that they find for convenience. However, if you do your homework and shop around a bit before you settle on an insurer, you’ll be better off. Make sure that you compare and contrast the price and quality. You should also read reviews and ask your relatives and friends. That helps to buy the best insurance for the lowest prices. All these important tips don’t just help you get the cheapest insurance, but they also help you add to your savings.
Unfortunately, for some this is easier said than done. There’s no shame in admitting that you’re a bad driver. Everyone is at one point or another. That being said, if you have a history of parking tickets, accidents, or near misses, then you’ll get high-interest rates.
Traffic violations are also detrimental to your track record. They’re so severe that they can remain a factor for high-interest rates for up to 3 years. In case of major accidents, you can stand to pay higher premiums for up to 5 years.
The most serious traffic violations, including hit and run cases, affect your premiums the most. These range from an average of 85% to as much as 400% in some states.
Stop Showing Off
You don’t always need to be the big shot. You don’t need to have the most expensive car on the block. It goes without saying that the most expensive cars have the highest insurance costs. The cheapest vehicles to insure are vans, followed by trucks, SUVs, hybrid/electric vehicles, and then luxury cars. Hence, when you’re buying a car, think wisely about how much it will cost to maintain it. Don’t be enamored by the spinning rims and the beautiful shine. Think about what it means for your finances.
That’s right. Outside of your mother, nobody feels better about you getting married than your insurance company. The belief is that married folks are generally a bit more stable and are more focused on home ownership and children. Historically, married drivers tend not to file insurance claims as often. Insurance companies are looking for stability and they have run the numbers. You will be given a hefty discount on your insurance costs if you are married.
Pay Your Bills
Insurance companies are looking for stability. If you live a life being fiscally responsible, insurers will take it into account when pricing your policy. Hence, if you have a good credit rating and are known to be financially responsible, you will get better rates. Drivers with credit scores ranging from 800-850 pay nearly half the rates that people with a 300 or 500 pay. Other factors that play into this are employment and past loan payments. Of course, if you’re a former military serviceman, you’ll get a better rate nonetheless.
Even if you have a bad credit score, you can improve it by paying debts and setting up payment reminders.
Go For All The Discounts
You can get a discount for just uploading your documents online and allowing the insurance company to automatically draft your premiums every month or every quarter.
Look Into A Higher Deductible
If you are confident about your driving skills, ask about a higher deductible. It can be a gamble if you end up filing multiple claims. Just like other types of insurances, you can decrease your rates by increasing the paid deductible. For example, if you increase your deductible from $500 to $1000, you can reduce the premium average by 8.5%. If you increase it from $500 to $2000, you can decrease it by 15%.
Your insurance premiums will change significantly based on the city state you live in. Suburban areas generally have lower insurance costs than urban areas. For example, the average annual auto insurance cost in Vermont is under $950 while the average annual auto insurance cost in Michigan is over $2,200 per year.