Drivers who really want the lowest car insurance rates can be proactive and take steps to keep their rates and premiums as low as possible. There are many factors that are considered when calculating auto insurance premiums, including age, gender, type of vehicle, make and model, driving records, credit scores and the area where the driver lives. By getting free, instant quotes online to compare policies, coverage, companies, and premiums, drivers can find the cheapest prices for the best policies. Here are a few things to keep in mind as you complete a comparison of carriers.
Keep A Clean Driving Record
Obeying traffic laws and driving defensively helps drivers avoid tickets and accidents that can raise their rates. Drivers with clean driving records get the cheapest policies since companies believe these drivers are less likely to have accidents which result in claims and payouts. In addition to getting lower quotes, drivers with no accidents or traffic tickets in more than 3 years may be eligible for a good driver discount. Driving responsibly is an easy way to save money on your coverage.
On the other hand, some drivers may be considered high risk, due to recent tickets, citations, or car accidents. Other drivers, specifically teenage drivers or young drivers may simply be considered high risk drivers because of their age and inexperience. These consumers will eventually find affordable premiums, but will need to maintain a clean driving record, compare policies, and find companies that offer them cheaper rates than other carriers. Over time, all driving records are wiped clean if new accidents or tickets do not occur.
Choose The Right Car, Make and Model
The type of car a driver owns has an impact on his or her car insurance rates. The most expensive vehicles to insure are those that are considered sports cars or luxury vehicles. The primary lure of sports cars is speed and handling and companies think that drivers of these vehicles are more likely to drive irresponsibly and be involved in accidents.
Luxury cars also get higher quotes, but for a different reason. Luxury cars cost more to insure because repairs and damages require larger payouts by providers when claims are received, resulting in rates that will cover the carrier’s liability.
The least expensive vehicles to insure are family cars which include SUVs, crossovers, minivans, sedans, and compact cars, usually from Toyota, Honda, Ford, or Chevy (GM). Drivers who are buying a new car should compare insurance quotes online for specific information on cars with the best rates.
Safety Options Lower Rates
Although the specific safety options that lower the rates of auto insurance may vary between carriers, car safety options can garner discounts to help drivers get the best coverage. Air bags, anti-lock brakes, traction control systems, passive restraints, collision avoidance systems, alarm systems and anti-theft devices and rear view cameras may allow potential policyholders to get discounts on quotes, since these devices and safety features help in preventing car accidents and auto theft. The right car with the right safety options can help consumers find the lowest quotes available.
A Good Credit Score Can Lower Your Rates
Everyone knows that banks and credit card companies offer the best interest rates to individuals with the highest credit scores. Insurance companies also check credit scores when giving out quotes since a high credit score indicates that a person is responsible with money, and responsible behavior tends to carry over into other areas like driving. Drivers who have a clean driving record and a good credit score will get the lowest prices. Drivers can also save money by paying the policy in full for a year at the beginning of the term instead of paying in monthly or quarterly installments.
Location – Where You Park Your Car
The type of car insurance that is most affected by where a driver lives is comprehensive coverage. Comprehensive insurance covers damage due to theft, vandalism, fire, arson, floods, collisions with wildlife and other weather-related damages. Drivers who live in urban areas and areas prone to natural disasters (floods, tornadoes, wildfires, hurricanes) pay higher rates since they are more likely to present a claim. Urban drivers can save with lower premiums if their car is usually parked in a secure garage instead of on the street.
Women Get Lower Prices
Statistically, women drivers have fewer moving violations and accidents than men of the same age. This is believed to be, in part, because females typically drive fewer miles per year than males. Families may be able to get lower premiums by putting the most expensive family car in the wife’s or woman’s name and making her the primary driver. It is best to compare the rates for a man and a woman to see which primary driver gets the lower quote. Married drivers usually pay less than single drivers for their auto coverage, too.
Age vs Premiums
Young drivers, under the age of 25 and particularly teenage drivers, have the most expensive rates, especially if they are single. Drivers over 65 may be able to get discounts and the lowest auto insurance since drivers who no longer work every day drive fewer miles annually. Young drivers who drive less than 15,000 miles per year may be eligible for better prices due to a “Low-Mileage” discount. It is important to give accurate information about the average number of miles driven each day. Young drivers may also be eligible for discounts by passing driver education courses.
Defensive Driving Classes
Drivers may be able to save up to 10% for up to 3 years just by taking a defensive driving course. The courses are available at driving schools and online, take about 8 hours to complete and cost between $30 and $50, making driver’s education classes a great investment. Before taking the course, drivers should check with their state DMV or insurance provider to see if the school is accredited. Drivers should consider taking a defensive driving class every three years, making sure to mention these defensive driving classes to your car insurance company.
A material misrepresentation is a lie or an omission on a car insurance application. If the company finds a material misrepresentation after a claim has been filed, the carrier may be able to void the policy and deny the claim. The most common misrepresentation involves lying about where the car is garaged. Lying on the application or committing fraud is not a good, long-term strategy to save money and it may cost a driver a lot more in the long run.
Comparisons and Discounts
Drivers who want to be proactive about getting cheap car insurance should compare instant quotes online from several companies. Consumers and potential policyholders should complete a basic comparison of policies, coverage options, and rates annually to make sure they are getting the best deal.
Another benefit of asking for a free quote is that consumers can make sure they are receiving all the discounts for which they qualify. A few basic discounts to keep in mind include multi-policy, multi-car, good driver, good student, low-mileage and customer loyalty discounts.
Some car insurance companies may offer additional discounts like the new snapshot discount that is available from several carriers and can lower rates as much as 25%. The Snapshot discount, a type of usage-based coverage, uses a device to analyze your driving habits for 6 months, and will allow you to pay as you go.
Getting The Best Quotes
Getting the cheapest auto insurance only requires that a driver actually compare quotes to find the best rates and coverage. Since coverage is an ongoing, mandatory expense in the United States, drivers should take the time once a year to review their policy, payments and discounts.
If you’re curious about what other companies are charging drivers like yourself, MyCarInsurance123 can help you. Just enter your zip code, pick a carrier in your area, and compare rates.