Cheap Car Insurance

Car Insurance With A Suspended License

Car Insurance With A Suspended License

Getting car insurance with a suspended license can problematic. If your driver’s license has been suspended, then you might have questions about how to find cheap car insurance. While you may still be able to buy insurance for drivers with a suspended license, your current company may decide to cancel your policy or prevent you from renewing your coverage. Depending on the reason for your suspended license, there may be a workaround that can get you and your vehicle insured by a good provider.

Here’s everything you need to know about how to get auto insurance with a suspended license, including ways to get cheap rates and the top insurance companies to work with.

Car Insurance With A Suspended License

Can You Get Car Insurance With A Suspended Driver’s License?

This is one of the biggest questions people ask after having their driver’s licenses suspended. On the one hand, if your license is suspended, you can’t legally drive a car. On the other, if you do not maintain insurance coverage, the lapse may affect your rates in the future.

Unfortunately, when it comes time for your insurance company to renew your policy, your insurer will pull a DMV report and discover your suspension. At this point, most carriers will either cancel your policy right away or refuse to renew it once the policy expires.

Furthermore, most auto insurance companies won’t issue a new policy to a driver with a suspended license. This is because most suspended licenses are a result of reckless driving or serious traffic violations, including a DUI, DWI, a number of moving violations that accumulate points, or simply driving without a license.

To an insurance company, a driver who ignores the law is a high-risk driver who will eventually cost the company money in terms of a claim. This is why some providers will charge very high premiums or deny coverage altogether.

How To Get Insurance With A Suspended License

Suspended license insurance can be difficult to find since the suspension alone makes you a tremendous risk to insurance companies. Nonetheless, you may have some options. First and foremost, call your insurer and ask whether you can keep your insurance policy if you agree to sign an affidavit of non-use.

Essentially, this affidavit is a legal statement that says you will not be driving the car. Once filed, the insurance company is under no obligation to pay for any claims that arise out of your use of the car.

Another option involves purchasing comprehensive insurance coverage, which can cover your car in the event of theft, vandalism, weather, or other non-use accidents. Some insurance providers will offer comprehensive coverage without the previously mentioned affidavit because it is illegal to drive your car without liability coverage.

So if you were to drive with comprehensive only, the insurance company would not be held responsible when it comes to damages. It would only be responsible for damages that occur during non-use events.

How To Get Insurance With A Suspended License

Best Insurance Companies For Suspended License

Finding the best insurance companies for a suspended license can be tricky. Although there is no comprehensive list of auto insurers that will provide you with suspended license insurance, there are a few factors to consider that will make your search easier.

While most companies in the US will not sell you collision insurance unless you first purchase comprehensive coverage, there are some providers that will sell you a stand-alone comprehensive policy regardless of your license status.

In fact, this is referred to as OTC coverage, which stands for “other than collision”, but these carriers do not make your car legal to be on the road.

If you struggle to find an insurance company to provide you with this sort of coverage but you own your home, take a look at your homeowner’s insurance policy to find out whether vandalism, theft, and damages would be covered as long as the car is on your property.

You may just discover that you don’t need to purchase a suspended license insurance policy after all, but be aware that the limits your homeowner’s insurance company will pay are typically quite low.

Why Your License Might Get Suspended

Your license may get suspended for any number of reasons, so if you want to avoid the hassle and expense associated with lapses in coverage and trying to keep your car insured despite your suspended privileges, you will want to steer clear of them. They include:

  • Driving without insurance
  • Driving under the influence of drugs or alcohol (DUI or DWI)
  • Refusing to take a blood-alcohol or breathalyzer test
  • Leaving the scene of an accident (with or without injury)
  • Failing to pay your child support
  • Failing to pay your tax debts
  • Accumulating a maximum number of “points” on your driver’s license in a predetermined time-frame
  • Reckless driving

This list represents the most common reasons for license suspension, bit it is not all-inclusive.

Suspended Drivers License Insurance

Keep Your Insurance After A License Suspension

Despite this, there are several reasons why you might want to carry suspended license insurance, even if you can’t drive your car yourself.

  • You aren’t the only driver. If you’re married, or if you have licensed children who are driving your car, then maintaining insurance is vital. In most states and locales, driving without car insurance is illegal and very, very risky.
  • You don’t want the gap in coverage. Lapses in auto insurance coverage for any reason will hurt your insurance credit score, and this means your rates will go up quite a bit when your suspension is over.
  • You want to keep your car protected. Finally, even if your car won’t be out on the road, you might want to keep it protected in the event of theft, vandalism, or damage caused by severe weather.

Whether or not your insurance provider will give you coverage for any of these reasons depends solely on the provider. The best thing you can do is contact your insurer and ask about their options for suspended license insurance.

How To Get Your License Reinstated After Suspension

If your license has been suspended and you want to get it reinstated, there are a few things you will need to do beforehand. First, if you disagree with the reasons why your license was suspended in the first place, find out if you can appeal the decision – but do so within 30 days.

Next, determine how long your suspension is slated to last. It may be definite, which means it ends on a certain date, or it may be indefinite, which means there is no set end date. Ultimately, you must fulfill the court’s conditions before you can reinstate your license.

If it is a definite suspension, you must wait until reinstatement is available, ensure that you have paid any relevant fines and court costs, and then visit your local DMV. You may be required to take a written or driving test, and you may even need to pay more fines or fees before you can reinstate your license.

If it was an indefinite suspension, you will need to meet the criteria attached to the suspension. You can find this information online in most states, or you can call your local DMV to learn more.

Cheap Car Insurance For Suspended License

The Difference Between A Suspended and Revoked License

Many people mistakenly use the terms “suspended” and “revoked” interchangeably, but it is important to note that the two are not the same. A suspension simply indicates that you have temporarily lost your driving privileges, which may allow you to purchase non-operating or non-use suspended license insurance to avoid coverage gaps until your license is reinstated.

A revoked license is much more serious. Though it is much like a suspension, once a revocation ends, you can’t simply pay a fee and start driving again. In this case, you must start over to obtain your license. From taking the written driver’s test to passing a road test with an instructor in the vehicle, you will have to go through your DMV to get a new driver’s license.

Does A Seatbelt Ticket Affect Insurance

Does A Seatbelt Ticket Affect Car Insurance?

Auto insurance can be quite costly depending on where you live, and most drivers work hard to keep their rates cheap through careful, responsible driving. You likely already know that accidents, speeding tickets, and other moving violations can affect your premiums and cause your rates to go up, but does a seatbelt ticket affect insurance? If you’re wondering if getting a seatbelt ticket will go on your driving record, the answer depends primarily on your insurance company and the state in which you live.

Since a seatbelt ticket is a minor traffic violation, many states do not consider a seatbelt ticket a moving violation. These states also do not allow insurers to penalize drivers for not wearing a seatbelt. Some good insurance companies don’t even consider minor tickets as risk factors, and therefore do not let a seatbelt ticket affect insurance rates.

Let’s learn more about seatbelt tickets and how they can affect insurance premiums and driving records.

Does A Seatbelt Ticket Affect Insurance

Does A Seatbelt Ticket Affect Insurance Rates?

Of all the different traffic tickets and violations that you could receive, a seatbelt ticket may seem very minor. After all, failing to wear a seatbelt does not put other drivers at risk. Unfortunately, from the point of view of your insurer, seat belts reduce your risk of injury. This means that in the event of an accident, you are likely to sustain fewer injuries, which would cost your insurance company less money in medical expenses. As a result, most insurance companies will raise your premiums for a seatbelt ticket.

Do Seatbelt Tickets Go On Your Record?

Whether or not seatbelt tickets go on your record depends on a few important factors.

First Violation Forgiveness

Some insurers offer “first violation forgiveness”, which simply means that your first violation will not affect your premiums. However, this does not mean that the ticket will not go on your driving record.

Fighting a Seatbelt Ticket In Court

If you are fighting a seatbelt ticket in the court system, and your ticket is dismissed, it does not go on your record and your insurance premiums will not increase.

Your Car was Manufactured Before 1963

Some cars made before 1963 year did not have seat belts, and you are not required to wear them in these cases. However, children must always be properly restrained, even in these antique cars. Failing to do this can result in a violation on your driving record and your car insurance will go up.

Doctor’s Note

Finally, if you have a doctor’s note that excuses you from wearing your seatbelt due to some sort of medical condition, you can’t be ticketed for failure to wear a seatbelt, and it will not go on your record.

Seatbelt Ticket

Which States Do Not Consider A Seatbelt Ticket A Moving Violation?

There are many states that do not consider a seatbelt ticket a moving violation. States like Alabama, Arizona, Delaware, Minnesota, Indiana, Michigan, Nevada, Missouri, Kentucky, North Carolina, Utah, and Wyoming count a seatbelt ticket as a non-moving violation. This means that a seatbelt violation in these states will not affect your insurance.

On the other hand, states like Connecticut and Massachusetts do consider a seatbelt ticket a moving violation. Furthermore, a ticket in these states will go on your driving record.

Who Receives The Violation – The Driver or Passenger?

Different states also have unique ways of issuing tickets. Some states will issue the driver a ticket if the passenger is not wearing a seatbelt, and others will issue the ticket only to the individual passenger in violation of the law. If your state issues seatbelt tickets to passengers, the violation will not affect your driving record or insurance premiums, but it may affect the passenger’s.

For example, in Washington, passengers age 16 and up can receive tickets if they are not buckled up – the driver is not liable. However, if a child under 16 is not restrained with a seat belt, the driver is ticketed, even if that driver is a teen.

If you are charged with a violation, the seatbelt ticket will add points to your license, go on your driving record, and your insurance rates will be affected.

To be certain, be sure to review the laws in your state. If you see your premiums increase, compare car insurance companies and coverage options to find the lowest rates on the market.

Parking Tickets

Do Parking Tickets Affect Insurance?

Parking tickets are annoyances for many, particularly in big cities where parking is scarce, parking signs are confusing and traffic enforcement is everywhere. And while parking tickets can be expensive, the more important question is do parking tickets affect your insurance and go on your record? If you’ve recently gotten a parking ticket, you may be concerned that it will raise your insurance rates and cost you money.

Fortunately, parking tickets aren’t considered moving violations, which means that as long as you pay your ticket on time and in full, your car insurance rates shouldn’t increase. In fact, a parking ticket won’t even go on your driving record or affect your history. This applies to both public and private parking tickets.

The only thing you should be concerned about is how an unpaid parking ticket can negatively impact your credit score, which could increase your premiums. If you’re clearly in the wrong and deserve the ticket, go ahead and pay the traffic ticket; otherwise, quickly file an appeal so the issue gets sorted.

Here’s everything you need to know about how a parking ticket can affect insurance and whether or not the ticket will go on your driving record.

Parking Tickets

Will A Parking Ticket Affect Your Insurance?

The truth is, non-moving traffic violations and parking tickets do not affect your insurance. Statistics show that parking your car illegally or in an unauthorized area has nothing to do with the likelihood that you will be involved in a car accident and file a claim. For this reason, parking tickets are not rating factors and do not cause premiums to go up.

Do Parking Tickets Go On Your Record?

Parking tickets do not go on your driving record because they are not moving violations. Traffic and moving violations (like speeding tickets) occur only when the car is moving, not while the car is parked so traffic tickets don’t count as traffic violations. However, if you get many parking tickets in a short period of time, or if you do not pay your parking ticket by the date it is due, this could ultimately show up on your record in a few different ways.

While the tickets will not influence your driving record, the consequences of failing to pay them certainly can. If you delay paying off too many parking tickets, the DMV can tow your vehicle, put a boot on your tire, or suspend your license and vehicle registration.

Do Parking Tickets Go On Your Driving Record

Fines and Penalties For Parking Tickets

Although parking tickets don’t affect your insurance and will not find their way onto your driving record, there are numerous things that may happen if you get too many parking violations or you do not pay them in a timely manner.

These include the placement of a boot (a device that prevents you from moving your car) or even having your car towed and impounded. Some of the other fines and penalties, including having your vehicle’s registration suspended or taking a hit to your credit score, can result in higher insurance rates.

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Government vs. Private Parking Tickets

Both the local government (including police officers and traffic enforcement) and private organizations (such as a paid parking lot) can issue parking tickets. The potential repercussions from those tickets vary based on who wrote the ticket. For example, a ticket written by a police officer or traffic enforcement is far more likely to result in a suspended license or registration if it goes unpaid.

In some cases, your license may not be immediately suspended, but you may be unable to renew it when the time comes. If your ticket comes from a private organization, it will likely get sent to a collection agency, which may negatively affect your credit and lower your score. Since insurance companies use your credit score as a rating factor, your premiums may increase the next time you renew your policy.

Furthermore, if your registration or license is suspended, your insurance provider is almost certain to find out about it, and that almost always results in a rate increase. There’s also a chance that your insurance carrier will drop your policy, and that means you’ll need to find a new company willing to keep you insured despite the lack of registration. This can raise red flags and result in an increase in your rates.

Another factor to consider is the fact that unpaid tickets are often sent to collections, and over time, this shows up on your credit report. In addition to bad credit affecting your car insurance, a low credit score can impact the interest rates you get on a mortgage, car loan, or credit card.

Factors That Affect Car Insurance Rates

Factors That Affect Car Insurance Rates 2019

If you’re wondering what factors affect your car insurance rates, there are actually a number of ways companies calculate insurance prices. Also known as auto insurance rating factors, there are many different variables that impact premiums and others that do not influence your cost of insurance. Generally, the personal factors that affect your premiums the most are your age, gender, driving history, where you live, vehicle make and model, and coverage. With so much data and statistics available today, the best car insurance companies take several things into consideration when determining rates.

Below, we’ve compiled a complete list of how car insurance rates are determined. Furthermore, we discuss how these specific factors raise or lower your premiums to help drivers get the cheapest insurance coverage in their state.

Factors That Affect Car Insurance Rates

How Are Car Insurance Rates Determined?

Knowing what factors determine the cost of auto insurance can be powerful in buying cheap coverage. The various factors insurers utilize to come up with premiums vary from company to company, but the rating factors below are considered industry standards.

It is important to consider that each of these factors weighs differently, too. For example, a driver’s marital status will not impact prices as much as her driving record, claims history, vehicle type, or credit history. Along those same lines, one insurer may weigh a consumer’s age, gender, or zip code far more heavily than another. This is why we highly recommend you compare car insurance rates at least once a year to always make sure you are paying the lowest premiums possible.

Below are the factors that have the most impact on your car insurance prices.

Top 15 Factors That Affect Car Insurance Rates 2019

Where You Live – State, City and Zip Code

Because most auto accidents, collisions, moving violations, and tickets occur close to home, where you live influences your car insurance premiums. Similarly, drivers in high-density cities and areas are more likely to be involved in incidents resulting in claims. On the flip side, drivers in rural areas usually get lower prices.

Furthermore, consumers living in areas where auto theft, vandalism and similar crimes are common will also pay higher premiums, while residents of safe neighborhoods are labeled low risk and get lower premiums.

Another factor affected by where you live is the state insurance requirements. The minimum amount of car insurance you are required to buy according to state laws and regulations will increase or decrease your quote. This is why consumers often compare average car insurance rates by state in the hopes of understanding how much they are paying in comparison to other residents.

Compare Car Insurance Rates By State Averages

Ultimately, insurance companies use statistics and data based on your zip code, city and state to determine how much your insurance will cost. This is why providers always ask for your zip code when you get free insurance quotes online.

Age

Not surprisingly, age affects insurance rates. For the most part, insurance providers estimate that risk decreases with age. Studies have shown that young drivers are more easily distracted, and are far more apt to engage in risky driving behavior. This means that teenage drivers and college students with only a few years of driving experience pay higher premiums than older, mature drivers.

Nevertheless, as drivers get older, their rates will start to decline steadily. While there is no industry schedule for lower premiums by age, most young drivers find that their rates decrease by 15% to 20% when they reach the age of 25. The cost of insurance for 16, 17, 18, 21, and 23 year old male and female drivers confirms this trend.

In contrast to teen drivers, insurance companies consider drivers between the ages of 30 and 65 the safest, based on information collected by the Insurance Institute for Highway Safety (IIHS). Drivers who fall into this age range and have a clean driving record often pay the cheapest premiums.

While drivers between the ages of 65 and 69 are starting to show signs of being higher risk, quotes increase once a driver reaches 70. Research has shown that elderly drivers have slower reflexes, and have the potential to experience a significant medical event (e.g. heart attack or stroke) while driving.

The takeaway is that young drivers have high rates and older drivers have low rates. However, states that don’t allow companies to rate based on age include California, Hawaii and Massachusetts.

Gender

Insurers also consider gender when they calculate quotes, and while this may seem outdated, statistics have shown that male drivers are more likely to be involved in accidents and collisions than female drivers. There are several reasons for this.

For starters, men tend to drive many more miles than women each year, which creates an inherent risk. Statistics have also shown that men are more willing to engage in risky behaviors behind the wheel; more men than women are cited for failure to use a seat belt, drinking and driving, and excessive speeding than women every year.

Of course, things change as people age, and by the time men and women reach their 30s, auto insurance premiums are about the same for both. Some insurers may even rank females as higher risk drivers once they reach their 30s, but again, this depends on the company’s own claims data.

Finally, once drivers reach the age of 60, statistics again show that male drivers pose the bigger risk; men over the age of 60 crash more often than women in the same age group. However, this is also strongly correlated with the fact that males tend to drive more, often being the primary driver when the family is together.

Nevertheless, there are states that do not allow gender to affect rates, including Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.

Marital Status

Marital status can also be a factor in determining your cost of car insurance, thanks to statistics. It has been shown that married couples simply drive less frequently, and less time spent on the road means less risk for companies.

Similarly, traffic data suggests that married drivers tend to be safer and more conservative on the road, while single drivers engage in more risky behavior. For instance, a study conducted by the National Institute of Health (NIH) even found that single drivers were twice as likely to be involved in an auto accident during their lives. As a result, single drivers can expect to pay higher premiums compared to married drivers.

Across the board, married couples save between 5% and 15% on their insurance policies based on marital status alone. It is also important to consider the fact that the best car insurance companies provide discounts for combined policies – a significant perk for married couples who purchase multi-car policies or who bundle existing policies (i.e. home and life insurance).

Driving Experience

Driving experience is one of the biggest factors that car insurance carriers use to determine risk. The less experience a driver has, regardless of his/her age, the higher the risk of an auto accident. By far, teenage drivers and college students are the riskiest to insure due in part to their lack of experience. When insurance companies factor in their age, the reasons why policies for teenage drivers are so costly become clear.

Generally speaking, the more experience a driver has, the lower his/her premiums, but driving record plays a role, too. Drivers who have many years of experience and a clean driving record without collisions or traffic tickets pose the least risk to insurers, and they are rewarded with the cheapest car insurance rates.

On the other hand, a driver with 20 years of driving experience, a few at-fault accidents and several traffic violations will see his premiums go higher.

Driving Record and Claims History

Of all the factors providers use to calculate your cost of insurance, your driving record and claims history is one of the most influential. Your driving history provides an accurate summary of a driver’s ability to remain safe on the road, his/her penchant for taking risks, and ultimately, the risk the insurance company assumes in selling that individual a policy.

One violation may not result in you being labeled a bad driver because most carriers allow you to take a defensive driving course. However, two traffic violations may increase your monthly or annual premiums by 20%. Unfortunately, more serious violations such as driving under the influence (DUI) or reckless driving can push rates up by 50% or more.

How Claims Affect Car Insurance Premiums

Many of the nation’s largest insurance companies consider drivers who have multiple serious violations uninsurable. This simply means that for some companies, the risk posed by some drivers far outweighs any potential benefit in insuring them.

It is still possible for these individuals to purchase car insurance policies through nontraditional insurers at a significant cost. Most carriers have specific subsidiaries that deal with high risk auto insurance.

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Credit History

Research indicates that a driver’s credit score can be a strong indicator of responsibility and safe driving on the road. Some consumers disagree with companies basing car insurance costs on credit scores, claiming a driver’s credit history has very little to do with the ability to drive safely and defensively. Statistically, though, drivers who have lower credit scores (typically under 600) are riskier to insure.

Consumers with bad credit or low scores tend to file more claims as a whole, and they tend to inflate the dollar amount of those claims more often than drivers with higher credit scores. Recent research even demonstrates that individuals with low credit scores are more likely to commit insurance fraud.

Although some states do not allow carriers to consider your credit score and history as a rating factor, it still may have an influence on how you can pay for your policy. For example, drivers who have very low credit scores may be required to pay for six months’ worth of premiums up front.

In other cases, insurers will not allow individuals with poor credit to set up automatic payments. Because many providers offer discounts for this, but only to those with good credit, those with poor credit may see an additional charge of between $5 and $10 each month.

States that prohibit the use of your credit score as an insurance rating factor include California, Hawaii, and Massachusetts.

Previous Insurance Coverage

Compiled data collected from many of the country’s top insurers shows that individuals who have had auto insurance coverage for a long period of time without a lapse are less likely to be involved in accidents. Though insurers prefer to see drivers who have had an insurance policy through the same company for at least one year, this is only a minor consideration.

The longer drivers can go without a lapse in coverage – and without late payments – the lower the risk to the new insurer, and the cheaper the premiums as a result. Even a very short lapse in coverage of one or two days can result in more expensive rates.

Teens or young adults who are moving from their parents’ policy to their own are special considerations in this case; this is not considered a lapse in coverage as long as the new policy takes effect before the current one ends. Even consumers who won’t be driving for an extended period of time have an affordable option to prevent a lapse. The cheapest car insurance policy in this case is a non-owner’s policy.

Vehicle Type and Value

The type of vehicle and its value also tremendously influence costs. Some vehicles may be stolen or vandalized more than others in certain areas, and statistics might also show that vehicles in a specific color are more likely to be involved in accidents. Moreover, certain vehicle types, such as sports cars, are conducive to speeding or aggressive driving styles.

The make and model will also influence the vehicle’s value and potential cost to the insurer to repair. For instance, a Mercedes Benz, BMW, Porsche, Audi, Lexus, or Jaguar is likely to be more valuable and more expensive to repair or replace than a Ford, GM, Camry, or Honda produced in the same year.

Some insurance carriers look at the condition of the vehicle, as well. Automobiles that have not been properly maintained and those that have been in previous accidents may be at more risk of mechanical failure on the road, thus increasing risk.

On the other hand, a car with numerous safety features, such as side curtain airbags, anti-lock brakes, traction control and an anti-theft device, may be eligible for significant discounts since these features lower the risk of injury and damage.

Average Annual Miles Driven

The number of miles a consumer drives each year also plays a role in determining overall risk. After all, the more time a driver spends on the road, the greater the likelihood of being involved in an accident at some point. Insurers may calculate a driver’s mileage in any number of ways, but the most common involves determining the driver’s daily commute.

Cost of Car Insurance vs Annual Miles Driven

Vehicles driven for pleasure may have more or less annual mileage than those used for work, so insurance companies typically rely on the driver to provide accurate mileage information.

Finally, auto insurance rates for cars used for ride-sharing services or for making deliveries are much higher due in part to the additional mileage, but also to the enhanced liability of carrying passengers or goods.

If you have multiple cars on your policy and don’t drive one or more as often as others, talk to your company about getting a low-mileage discount.

Amount of Auto Insurance Coverage

Aside from your driving record, the amount of coverage you want (or need) to buy will significantly impact your monthly or yearly car insurance rates. There are numerous types of coverage from which drivers can select, and in most states, liability is considered the bare minimum. Other coverage options include collision and comprehensive, uninsured or underinsured motorists, and medical payments and personal injury protection insurance.

It is important for each driver and owner to truly understand his/her needs and remember that state minimums are not always the best choice, even though they come with the cheapest premiums. After all, if your coverage runs out, you are liable for medical expenses and damages out-of-pocket. Always buy enough protection to cover your assets and protect your family.

Consumers should talk to their insurance agents to discover their options and choose a good mix of affordability and risk reduction. For new cars, buy full coverage auto insurance coverage; otherwise, for old or low-value vehicles, just get liability. Some insurance providers may even sell discounted roadside assistance, which can come in handy for drivers whose vehicles may break down or run out of fuel on the road.

Deductible Amount

A deductible is the amount of money a driver must pay toward a claim before the insurance company insurer will pay out. Deductibles can vary from company to company and from policy to policy, but most range from $0 to $1,000.

The lower the deductible, the higher the car insurance premium and vice-versa. Many drivers mistakenly choose a high deductible to get lower monthly payments only to find out that they don’t have the money saved to pay the deductible for a significant repair.

Though it may seem like a good idea to get the cheap car insurance option despite the high deductible, drivers should always consider their financial circumstances and whether they can actually afford the deductible in the event of an accident. Much like choosing coverage amounts, it is important to balance the affordability of the car insurance policy with the affordability of the deductible.

Education

Drivers with more education tend to pay less for car insurance coverage. Studies have shown that a driver without a college degree can get quoted a rate 20% more than another consumer with a bachelor’s degree. Similarly, professionals with post-graduate degrees enjoy the lowest rates.

Grades

Many students and parents of young drivers wonder if grades affect car insurance. Because most insurers offer good students discounts, having good grades can help parents and families get lower insurance rates.

Companies have found that grades can correlate with driving behavior and risk. Specifically, students with a “C” or “D” average were nearly 50% more likely to be involved in an accident within their first year with a driver’s license.

For this reason, providers will give discounts to students with good grades. Parents of teens or students with at least a 3.0 grade point or “B” average should ask their agent or representative for a “Good Student Discount”. Just be prepared to provide documentation since most carriers will request a transcript or some form of proof.

Compare Car Insurance Rates

While understanding all the rating factors that can affect insurance rates can be helpful in finding the cheapest prices, the truth is that the best way to get lower premiums is to bring a competing quote from another company. Use our free online car insurance comparison tool to get free quotes online from all the best providers. Even if you don’t plan on switching companies, if another carrier is offering cheap rates, your current insurer is likely to match their prices to keep your business.

Just enter your zip code to find companies in your area and get multiple instant quotes to compare policies, coverage options, prices, and services! Ultimately, this is the only way to ensure you are getting the best auto insurance for your needs!

Cheap Car Insurance

Cheap Car Insurance 2019

If you are looking to get cheap car insurance, here is a list of ways to get the cheapest car insurance available in the United States. We discuss everything from researching the type of coverage you need and how policies work to finding discounts and comparing quotes online. However, before finding affordable auto insurance, you need to know what factors affect rates, how companies calculate premiums, and who gets the cheapest quotes.

Cheap Car Insurance

How Car Insurance Rates Are Determined

When evaluating your risk profile and calculating rates, auto insurance companies consider the following factors:

  • Personal Demographics – Age, Gender, Marital Status
  • Location, Local Theft and Crime Rates, Urban vs. Rural
  • Vehicle Type, Make, Model, Crash Test and Safety Scores
  • Driving Record/History – Accidents, Citations/Tickets, Violations
  • Annual Mileage Driven
  • Credit Score and History

Drivers who are statistically more likely to submit insurance claims, also known as “high risk applicants”, tend to get higher premiums, while the cheapest rates are reserved for low-risk safe and responsible drivers.

Who Gets The Lowest Price Quotes?

Based on actuarial tables and statistical analysis, companies offer the lowest insurance quotes to those who:

  • Are female.
  • Are over the age of 25.
  • Are married.
  • Drive older, cheaper vehicles.
  • Own cars with good safety records.
  • Live in rural areas or suburbs.
  • Maintain a clean driving history with no accidents.
  • Have no moving violations within the last 3 years.
  • Drive less than 10,000 miles per year and qualify for a “Low-Mileage” discount.
  • Have and maintain a high credit score.

Consumers with the above characteristics cost carriers less money in terms of paid out claims, and are therefore the best types of customers to insure. Just remember that each of these factors does not equally affect your rates because your gender, age, driving history, and vehicle type are significantly more important than your credit score or marital status.

How To Lower Your Car Insurance Rates

If you have existing coverage, there are several ways to instantly lower your premiums. While not every option listed below will make a huge difference and save you hundreds of dollars per year, combining multiple strategies may make your policy noticeably more affordable. Here are some quick ways to get a discount on your car insurance.

  • Lower your coverage limits, but be careful to avoid under-insuring yourself.
  • Increase your deductibles.
  • Enroll in a defensive driving course.
  • Improve your driving record and avoid accidents and violations.
  • If you have a teen or college student added to your policy, make sure they maintain good grades and a high GPA.
  • Buy a car with a good safety record, the newest safety features, and an anti-theft system.
  • Move to a safe neighborhood with low crime rates, or a less densely populated area.
  • Driver fewer miles per year.
  • Increase your credit score.

List of Ways To Get Cheap Car Insurance

While all the top auto insurance companies generally use the same factors to determine premiums, each carrier’s calculations differs slightly, resulting in a broad range of prices. This is why comparing car insurance quotes from several companies is critical to getting cheap rates.

Start by reviewing your current policy because you’ll find there are changes you can make to your coverage that can immediately help you save money. Otherwise, the following list will help you find and get cheap car insurance.

Bundling, Multi-Policy Discounts

Most people have different types of insurance policies, including auto, health, life, home, dental, disability or renter’s insurance. By bundling multiple insurance policies with one company, also known as a “Multi-Policy” Discount, you can save up to 15% on each and every one. This also makes it easier if you ever have to file a claim. Working with the same company can help you build a relationship with your agent, broker or case manager, thereby getting better customer service.

Before switching companies, always complete a car insurance quotes comparison to make certain that the provider you choose is really the cheapest option. Some carriers specialize in certain types of insurance and can offer you better coverage.

Age-Based Discounts

Age is among the largest factors contributing to a company’s determination of your risk profile. Typically, drivers will see up to 20% cheaper premiums once they reach 25 years old, with additional discounts as they age and mature. Overall, studies have shown that drivers between the ages of 25 and 55 are the safest drivers on the road; obviously safer than teens, college students, and elderly drivers, including seniors. Therefore, the 25 to 55 age group will get the lowest rates.

However, some of this correlation might be attributed to discounts associated with marital status and a long, clean driving history, since married drivers are usually more responsible and family-oriented.

Multiple Vehicle Discounts

Most households and families own multiple cars, including seasonal, classic, or show cars. When looking for cheap auto insurance, add each new vehicle onto an existing policy with the same carrier. In addition to lower premiums, you will have less mail, policies, bills, and companies to deal with. Many insurers allow families to insure up to 5 vehicles under the same policy.

Driver’s Education, Defensive Driving Discounts

By taking a drivers education or defensive driving class and earning a certificate of completion, you may qualify for lower rates. Driving classes are offered by many public or private organizations, so be sure to ask your current carrier about the specific program you are interested in. Most companies will discount your premiums by up to 10% after completion.

Other insurers may offer their own specific program or class that drivers can participate in to get a discount. These driver’s education discounts can apply to anyone, regardless of age. Policyholders just need to successfully complete the course.

“Good Student” Discount – Get Good Grades

Teenagers, college students, and parents of young drivers may be discouraged at how much car insurance costs! Luckily, for any student currently enrolled in high school or college, “Good Student” discounts can help reduce premiums by 10% to 15%. It doesn’t matter if you are a teen driver under your parent’s policy or a college student with your own coverage, if a student can provide proof of good grades or a high GPA (3.0 or higher), an insurance agent will probably instantly lower your rates.

Group or Affiliate Discounts

While it isn’t advertised by companies or agents, you can get a discount on car insurance through personal affiliations and memberships. Being associated with certain employers, schools, military organizations, honors societies, credit unions, professional clubs, and associations such as the AARP or AAA can help you lower prices by up to 15%. Some credit card companies and banks even offer discounts to their customers. To see if you qualify through any memberships you may have, ask your agent about the types of affiliation discounts they honor.

Policy Length or Term Period

Changing the length of your policy and paying in full for 6 or 12 months can save you 10% on your total cost of coverage. While you may prefer to pay monthly premiums because it helps you set your monthly budget, an annual contract makes you less likely to let your coverage lapse. Making larger upfront payments also increases customer loyalty and minimizes administrative costs for your insurance company, who is happy to pass on some of the savings to you.

Increasing Your Deductible

A deductible is the amount of money you will have to pay out-of-pocket before your car insurance company will pay out on your claim in the event of an accident. Your policy’s deductible has a significant impact on your car insurance rates; the larger your deductible is, the cheaper your auto insurance will be.

Most coverage starts with a $500 deductible, so you may be able to increase yours to $1,000 or $1,500. However, realize that an increase in your deductible will mean a higher out-of-pocket expense to cover repairs, damages, and medical bills after an auto accident, which can be financially difficult for families on a tight budget. Don’t ever risk crippling financial hardship in the future for short-term cheap car insurance.

Research Before Buying A New Car

Buying a new car can be an exciting experience, but it is important to know if a new car is going to increase or decrease your car insurance costs. There are some instances where a new car can help you get cheap car insurance. For example, new cars with safety features such as driver-side and passenger-side airbags, anti-lock brakes, and anti-theft or security systems can help you lower premiums because safer cars prevent injuries during a collision.

On the other hand, a new car can mean higher repair or replacement costs. Buying a popular new vehicle can increase the risk of theft. Other factors to consider include the vehicle’s make, model, color and size. Sedans and smaller cars tend to have cheaper auto insurance than SUVs and trucks, and sports or luxury cars have more expensive policies than low-cost, older vehicles.

Don’t Overpay For Unnecessary Coverage

It can be hard to know exactly how much coverage you need in order to be adequately protected. At minimum, most states require liability car insurance, but companies offer many other add-ons, including comprehensive, collision, personal injury protection, rental insurance, gap coverage, etc. If you don’t know what these industry terms mean, check out our comprehensive guide on the different types of car insurance; otherwise, you could end up overpaying for protection you don’t need.

Work with your agent, broker, or company representative to determine how much coverage you should be buying according to your state’s minimum car insurance requirements. Afterwards, feel free to get a second opinion from a different carrier to double-check.

Review and Improve Your Credit Score

Surprise, your credit score affects your car insurance rates. This is because auto insurance is something that requires a monthly, semi-annual, or annual payment, and companies want to be sure that they can trust you to make payments regularly and on time. A high credit score symbolizes financial responsibility and credibility, which carriers have found correlates to being a safer, calmer, and better driver.

When searching for cheap car insurance, review your credit history to find inaccuracies that may be negatively affecting your score and rates. If you have a low credit score, work on improving it by becoming debt free, paying bills on time, and making timely installment loan payments.

Make Sure You Provide Correct Information

The information you provide on your application obviously influences your premiums. One figure many U.S. consumers overestimate is the mileage they drive every day to either work or school – their daily commute. Before you sign a contract for a new policy, you may want to keep track of how many miles you drive. For insurance companies, the more time and miles spent on the road, the greater your risk of being involved in a car accident and filing a claim. If you drive less than 10,000 miles per year, ask about a “Low-Mileage” Discount.

Additionally, where you live or move to can change your cost. Make sure you use the right zip code for your residence. Areas with lower crime and theft will typically have more affordable rates, although parking in a garage when living in a not-so-great part of town can help mitigate an increase in price.

Compare Car Insurance Quotes

Getting cheap car insurance doesn’t have to be a time-consuming hassle; there are many easy ways to get discounts and lower rates. By comparing car insurance quotes online, you can easily find the best and cheapest company. Get a free quote now to find affordable coverage, or wait till later to find out just how much you’ve been overpaying.

How To Save Money on Car Insurance

How To Save Money on Car Insurance 2019

Looking for ways to save money on car insurance? In the United States, anyone who drives is required to carry auto insurance coverage, making it all too important to learn how to save money with the cheapest car insurance. Whether it’s comparing online quotes to find cheap rates, cutting extra coverage, or switching to a better car insurance company, saving money on auto insurance premiums shouldn’t be so difficult.

Here are 10 ways to get the lowest auto insurance rates in 2019 without sacrificing coverage, reducing policy limits or increasing your deductible.

How To Save Money on Car Insurance

Keep A Clean Driving History

Drivers who want the cheapest car insurance quotes must keep their driving records clean. Drivers with no accidents, moving violations, tickets, or citations on their records will always get the best rates. Many insurers offer safe driver discounts to drivers that have maintained a clean record for at least 3 to 5 years. Ultimately, practicing safe driving habits and avoiding the classification of being a “high risk” or bad driver is the best way to save money on coverage.

Snapshot Discounts

A newcomer to the insurance industry, the snapshot discount uses satellite technology to track certain aspects of a driver’s habits, such as miles driven, time of day and number of hard brakes. The insured driver installs a device provided by the insurer in their car and your vehicle reports the information to the insurance company.

While a snapshot discount is not something you can rely on when shopping for car insurance, drivers can receive up to a 25% discount on car insurance rates after 30 days of purchase. Almost all auto insurance companies are now offering Snapshot Discounts, so comparing auto insurance quotes online, and then calling the best insurance company to negotiate your rates is your best bet to finding the cheapest rates.

Multi-Policy and Multi-Car Discounts

Drivers who buy other types of insurance such as homeowner’s, renters, health or term life insurance may be eligible for multi-policy or bundling discounts from insurers. Many insurance companies offer discounts of up to 25% on each additional policy purchased from them.

By having one company fill all your insurance needs, such as home, life and auto insurance, drivers not only save money on their car insurance rates, but save money on their other insurance policies too. Bundling discounts on each policy should be considered when comparing quotes online and almost every insurance company offers this discount, as well as additional auto insurance discounts.

Earn A Defensive Driving Discount

Several states require that car insurance companies provide discounts for up to 3 years for drivers who complete a defensive driving course. These driver education courses are available online for as little as $30 and take about 8 hours to complete, but can save you close to 10% on premiums.

Even in states that do not mandate the discount, many insurance companies offer it voluntarily. The auto insurance discount is open to drivers of any age regardless of their driving record. Defensive driving courses are one of the easiest and surest ways to get the lowest rates.

Apply For Teen Driver Discounts

Teen drivers who maintain a GPA of at least 3.0 and have good school attendance may be eligible for “Good Student Discounts” on their car insurance. There are also discounts for teens who complete and pass a driver education class either at school or through a private driving school. Additional discounts may be offered for students who have a job or do community volunteer work that show responsible behavior.

Safety Features Save Money

Cars with safety features get cheaper car insurance quotes because many auto insurers offer discounts for anti-theft devices, alarm systems, anti-lock brakes, collision avoidance systems, rear view cameras and other add-ons that make your car safer. Furthermore, car make and models which pass the Insurance Institute for Highway Safety tests get lower rates than models which fail to pass these tests.

The logic is that these safety features and equipment make the car safer, thereby reducing damage and repair costs as well as minimizing medical expenses. Simply put, try to pick a car with an excellent safety record.

Women Drivers

Despite the jokes, women drivers are statistically safer. Female drivers generally have fewer accidents and traffic violations than men, leading to the cheapest premiums. To take advantage of this, some families put the most expensive car in the wife’s or mother’s name, making her the primary driver on the policy. Since online rate quotes are free, families can try requesting quotes for both a man and woman as the primary driver to compare the price difference.

Membership May Have Privileges

Discounts on auto insurance may be available to members of auto clubs, professional associations, organizations like the AARP, or even your employer. These groups negotiate special prices for their members with major car insurance companies. Some credit card companies may also provide special insurance discounts to their members.

Discounts For Advance Payment

The easiest way to save money on car insurance is to pay the full amount for the policy up front. Coverage with no down payment or monthly payments may have finance charges that increase the cost of your policy. Instead, auto insurers offer discounts for drivers that pay for a 6, 12 or 18 month policy.

Get Cheap Auto Insurance Quotes Online

Even drivers with less than perfect driving records can save money on car insurance by taking advantage of all the discounts for which they qualify. Otherwise, the simplest way to get cheap car insurance is to research and compare companies, rates, and types of coverage.

The auto insurance industry is incredibly competitive, and carriers are constantly trying to undercut each other’s prices to get new customers, so completing a car insurance comparison is ultimately the best way to make sure you are paying the lowest premiums.