Cheapest Car Insurance

Every driver wants to find the cheapest car insurance, but there are many factors that are used to determine rates. While drivers cannot change some of the factors that may increase their premiums, such as their current age, marital status, location, or the type of car they drive, drivers can take some steps to find cheap quotes. Drivers who want to get the best car insurance will utilize the following tips to find the best coverage and lowest rates.

Credit Ratings and History Count

Everyone knows that a good credit score means paying lower interest payments on loans, mortgages and credit cards, but most people do not realize that a good credit history can also have an impact on their insurance protection. People with a good credit rating demonstrate responsible behavior and insurance companies believe that this will carry over into their driving habits. Individuals with good to excellent credit ratings not only get better interest rates, they get the cheapest prices. If you currently have a good credit score, talk to your current carrier to discuss the different types of discounts you may be eligible for. If your carrier doesn’t offer cheaper premiums, compare car insurance quotes online to find an insurance company that does.

A Clean Driving Record Saves Money

Auto insurance companies check driving records and any moving violations, tickets or accidents within 5 years count against the driver and will affect auto insurance rates. Since a driving record does not always show if an accident was the driver’s fault, those with accidents that were attributed to another driver or no-fault auto accidents, may be able to save money by providing proof that the accident was caused by another driver. The easiest way to get the best car insurance is to maintain a clean driving record altogether and avoid the “risky” or bad driver category.

Defensive Driving Courses and Discounts

In some states, companies are required to provide a 10% discount for up to three years to drivers that complete a defensive driving course. Many insurers provide the discount voluntarily in states that do not require it, so either way, a driver’s education course may help you get more affordable coverage. A defensive driving course usually takes about 8 hours and costs $30. For a minimal investment of time and money, you could potentially be saving hundreds of dollars in premiums.

Again, if your current insurer does not offer defensive driving discounts, look around for other companies that do. Then consider using that information to negotiate with your insurance company; if that doesn’t work and your sales representative is not willing to offering you lower rates, look into switching carriers. In the end, if your insurance company is not offering you the cheapest and best auto coverage, why stay with them? They may be taking your business and loyalty for granted.

Bundling Discounts

Many car insurance companies also offer homeowners, business, health and life insurance. These insurance companies often offer discounts of up to 25% to individuals who buy more than one type of protection. Drivers who buy all their policies from one company can get discounts and save on their other insurance needs. When the discounts are totaled, the savings are considerable and can add up to the hundreds if not thousands of dollars saved on car, health, or life coverage.

Good Student Discounts

Young drivers are the most expensive to insure, and families with teenage drivers often pay the most. Major insurance companies usually offer “Good Student Discounts” to teens that maintain a GPA of 3.0 or higher and good attendance at school. Good attendance and good grades show responsible behavior which will likely translate into safe driving habits. While premiums for teenagers are still high, good students will always save you money, at least relative to other teen drivers.

Women Cost Less Than Men

Lower rates for women is not gender discrimination, it is based on statistics that show women tend to have fewer accidents and serious driving violations than men. Some families have found they can get the cheapest auto insurance coverage by putting the cars and insurance in a woman’s name. Male drivers must still be listed on the policy, but rates may be lower if a woman is the primary insured driver. Multiple driver households can try comparing quotes with a man and a woman listed as the primary driver to see if this can help them get the best insurance.

Your Location And Neighborhood

Auto insurance rates are based, in part, on where a driver lives or garages the insured vehicle. Drivers in urban areas that park on the street have the highest costs for comprehensive insurance coverage since the risk of theft or vandalism is high. Drivers that keep their cars in a garage or secured parking lot pay the lowest monthly premiums since this reduces the risk of a claim. While most drivers cannot change their location, they should be aware that where they live is a factor.

Yearly Mileage – Low Mileage Discounts

The cost of coverage is also based on the average number of miles a driver travels in a year. The more miles an individual drives, the greater the statistical probability that the person will be involved in an accident. People who get the best prices drive 12,000 miles or less in a year. Relocating closer to work can get help some drivers since it dramatically lowers yearly mileage. Driving less and keeping an accurate record of yearly mileage can result in cost savings.

Material Misrepresentations

Some drivers try to get cheap insurance by deliberately providing false information about where they park their car or how many miles they drive. Providing false information to your carrier can void the policy or result in a retroactive increase in premiums that will need to be paid immediately. It will almost certainly cause the insurer to cancel the policy and drivers whose car insurance has been cancelled cannot get the best rates when they apply for a new policy.

Drivers should also avoid committing insurance fraud because, aside from being a felony, material representations will effectively cause any future claims to be denied. So, as a policyholder, if you are involved in a car accident and need your insurance company to payout for repairs, medical bills, or property damage, you may end up being liable for the entire auto accident if you have committed fraud during the application process.

Unlisted Drivers

Trying to get cheap online quotes by not listing or excluding high risk drivers on the policy is another type of material misrepresentation. All persons of driving age living in a household must be listed or excluded and insurance companies may deny accident coverage for drivers who are not on the policy. This only applies to drivers living in the household, but policyholders should be cautious when they allow other people to borrow their car.

Final Word

Since different auto insurance companies use different methods to calculate their premiums, drivers looking for cheap coverage should compare the quotes of several companies. MyBestCarInsurance101.com helps consumers find the best and cheapest rates by allowing you to comparison shop from multiple carriers.