It is required by state law for drivers to buy and carry proof of car insurance, and each state has its own minimum car insurance. Beyond that, not having car insurance is extremely irresponsible and dangerous behavior for the driver and those who share the road with them. However, for some drivers, low cost car insurance is the only way they can afford to be insured, which is why it is important to learn how to get cheap car insurance.
Your Job Matters – Occupation
Although it is a controversial way to profile customers, occupations designated as “safe” can in turn denote a “safer” individual and get you better car insurance rates. White-collar workers, doctors, teachers, engineers, nurses, lawyers, consultants, and other careers that require higher levels of education and more conservative lifestyles will normally get cheaper car insurance rates.
Discounts via Association
Membership with AAA, the AARP, or other such member-benefit associations frequently offers discounts on auto and other forms of insurance. Also, check with any professional organizations, unions, credit unions, and other bodies you belong to for the same types of benefits. Groups are able to pool their numbers and spread out and lower risk, making car insurance costs cheaper for everyone.
Use Your Health Insurance
If you carry medical payment coverage as a rider on comprehensive car insurance, it might be possible to drop the medical payments coverage and rely solely on your health plan. If you are injured in an accident, your health insurance company will usually cover all medical costs and bills. Medical payments coverage could be eliminated without any real loss of protection and could get you cheaper premiums.
Defensive Driving – Education
An applicant’s driving record is a big factor when the car insurance company is determining their policy rates. However, even someone with a good history can get discounts taking driving safety and defensive driving courses.
These courses are offered by insurance companies as well as civic groups, private organizations, and DMVs in your state. The classes are not expensive, only take a few weeks to complete and can get you cheap car insurance as well as teach better driving skills and habits.
Good Grades and Students, Lower Rates
If there are teenagers who drive on a combined insurance policy, their driving performance will affect your quotes. This can work in their favor; for instance, if the young driver or student earns good grades in school, they can earn a discount called a “Good Student Discount” or “Good Grades Discount”, which is shared by all the other insured individuals on the policy.
The car insurance company feels that a teen who is showing responsibility in their schoolwork can be responsible in other ways and will reward this behavior. Car insurance for teenagers will be 5 to 15% cheaper using these discounts, and can start saving families money on their rates instantly.
The more someone drives a vehicle and is out on the road, the more chances they have of getting into an accident or receiving a traffic ticket. Companies offer cheaper car insurance quotes to policyholders who drive less.
If someone can prove they drive less than 7500 miles per year, they will get a significant rate discount. Some companies are even offering mileage-based plans, which is a new kind of insurance product. It can be less expensive for individuals whose habits suit the requirements.
Get Rid of Roadside Assistance
Although very useful, roadside assistance riders on an auto policy will drive up the premium price. It is almost certain that for the same price or less, the person could join AAA or other motoring clubs, while lowering their rates at the same time. Additional discounts can be obtained by being a member in these types of groups as well.
Just like you will pay less for buying items in bulk, policies bought for longer increments of time are less expensive. Drivers can get the cheapest car insurance by having a long-term policy. A term of 12 months or more will stretch out premiums and take advantage of long-term discounts. Carriers consider this customer loyalty, and also charge lower finance fees, providing even lower prices.
Pay In Advance – Payment Options
Instead of making a monthly premium payment, you may consider paying for the entire policy up front instead. This will frequently earn lower rates because carriers charge slightly higher rates on installment policies with finance charges due to the risk of payment default. Speak directly to the insurance agent about payment options to see if you can save money.
Keep Your Credit History Clean – Credit Scores
Car insurance companies check an applicant’s consumer credit report when they process their application, and people with lower credit scores pay more. You are judged as being financially irresponsible because you have a poor credit history, and thus, your credit may affect your car insurance.
Drivers with bad credit should strive to improve their score to demonstrate their reliability and responsibility. You’re your credit has improved, you may ask for a review when it is time for the policy to be renewed. A good credit score will help you get cheap car insurance and save about 5 to 10% on rates.
Bundle Your Policies
Most of the best companies offer several kinds of insurance, and carriers universally offer “bundling” discounts. If you have health, life, homeowner’s and car insurance from one company, your carrier will lower your premiums on all the policies you buy from them. This does save money, as well as decreases the hassle and paperwork you have to deal with.
Collision Car Insurance
Older, cheaper cars qualify for more affordable online quotes because they generally have low replacement values and cost less to repair. Collision insurance on inexpensive cars is not usually advisable as it is not cost-effective since collision coverage can end up costing as much as the vehicle itself.
Dropping collision coverage altogether can lower premiums. An alternative would be to raise the deductible, but if the vehicle is severely damaged or totaled, it is more cost-effective to spend the deductible on purchasing a new car instead.
Quotes Before Buying A Car
If you are in the market for a new car, always get a quote before buying. Insurance companies consider the make, model and all safety and performance issues in a car, not its appearance. A sports car or luxury vehicle with high theft ratings or an SUV with bad safety reports will be more expensive to insure.
Choosing a safe and reliable car that will meet the driver’s actual needs will get you cheap car insurance, a smart decision at a time when the economy is still recovering and managing your budget is essential.
Use A Credit Card
Since car insurance is a monthly cost for most people, you can plan ahead for how to budget your premiums. One way to maximize the value of the money you are paying is to make those payments earn something in return.
If you have a credit card with multi-purpose reward points, like American Express, Visa, Mastercard, Discover, or Chase cards, you can pay the monthly or annual premium with the card and get a discount through your credit card company. This will earn useful points, like airline miles, and improve your credit.