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10 Secrets to Cheaper Auto Insurance

A road sign that reads cheap car insurance to illustrate 10 secrets to cheaper auto-insurance

Are You Looking for Cheap Car Insurance?

Most people are. Monthly auto insurance premiums are usually a sore subject for many people who think they’re too high. More times than not, it’s true – they are too high. Some of us have figured out a way to buy cheap auto insurance by switching companies on a frequent basis, while others remain clueless on how to get a better deal without offending their current insurer.

When looking for cheaper auto insurance, be aware that some of your suspicions of how insurance companies calculate your rates are right on the nose. You may or not know that where you live and your credit score could have more impact on your overall rate than your driving record in some cases. That’s why, below you’ll find 10 soon-to-be not-so-well-kept secrets to cheaper auto insurance. Tell your friends.

1. How Much You Drive Can Affect Your Car Insurance Rates

The more you drive and the farther you have to travel will get you every time. Insurance companies keep a close eye on this. They feel the longer you’re in your car, the higher the chance you’ll have an accident. Cut back on your mileage whenever possible by taking public transportation a couple of days a week or carpool with someone from work.

2. Insurance rates Are Set by Where You Live

This can be a problem. We can’t always choose where we live, but insurance companies have figured out that location makes a big difference on the rate of premiums. High incidents of accidents, car thefts, and burglaries in an area can doom you to higher rates if you live there. Insurers can also evaluate you by state. As an example, Michigan and Louisiana have the most expensive premiums in the country, but if you live in North Carolina you can save up to $1,500 annually. Even crossing the Potomac from Washington D.C. into Virginia can save you $50 a month.

3. Your Educational Levels Plays a Part in Your Insurance Costs

The amount of schooling you’ve had shouldn’t dictate your auto insurance rate, but it does. A person with only a high school diploma with a good driving record is going to pay more than someone with a Bachelor’s Degree. Married couples can take advantage of this if one has a higher level of education. That person should be the primary policyholder in order to decrease your premium.

4. Your Credit Score May Have an Impact on Your Car Insurance

Unless you live in one of the states that has abolished this practice, your credit rating may play a part in how much your insurance company charges you. Insurance companies have long been using a credit score to determine how responsible a person may be behind the wheel. It doesn’t make much sense and some states — California, Hawaii, Maryland, Massachusetts, Michigan, Oregon and Utah – forbid insurance companies from this practice. Other states are restricting the ways insurance companies can use this type of information.

Man buys cheap auto insurance from insurance agent

5. Insurance Rates Have a Lot to do With Your Age

Insurance companies always play the odds when it comes to deciding your premium cost. Young drivers are inexperienced – they have no driving record for insurance companies to base their rates on. That inexperience also leads to more accidents and more tickets. As a group, young (teenage and early 20s) drivers collectively have more risk to the insurance company than older, more settled drivers. So, they pay more for their insurance.

Once young drivers get some years and experience behind them – and they manage to keep a clean driving record – their rates will come down. However, don’t get too comfy. If you make it into your late 60s and early 70s, your rates will go back up. Not to teenage levels, but more than the 30s, 40s and 50s.

6. Insurance Companies Care What Box You Check for Gender

Being a woman has its privileges, apparently. It’s been proven that women pay 12 percent less than their male counterparts, on average, for car insurance. In other words, men are generally going to pay an extra $15,000 on auto insurance over their driving life. The explanation for this is that men drive more aggressively, speed more, and file more claims. Sorry, men.

7. Who is Listed on Your Policy Has a Bearing on Your Cost

This could have a huge bearing on your premiums. Anytime you add young or risky drivers to your auto insurance policy, you’re going to get hammered. It’s just a fact. Don’t put someone with a multitude of accidents or DUIs on your insurance. As for your young driver – tell him to keep his grades up. That way, you can take advantage of the “good student” discount to bring costs down somewhat.

8. Let Your Car Insurance Company Monitor Your Driving Habits and Mileage

This is fairly new, but it might save you some money. In case you’re unfamiliar with telematics…it involves, with your permission, using a device or a “black box” in your car, which monitors your every move. Insurers can analyze your movements and driving statistics. If they determine you’re a good driver, using your car safely, and in accordance to the information you provided, you might prove to them you deserve a better rate. That is, if you don’t mind Big Brother watching.

9. Making Your Car Harder to Steal Will Earn You a Better Rate on Your Auto Insurance

Anti-theft equipment, which is found on most new cars, can prevent theft and save you money. Insurers offer discounts for anything that’ll keep your car safe. But, keep in mind, if you drive the most stolen car on the planet, you may want to install additional immobilizers, such as an ignition kill switch or fuel shut-off. Your insurance company will sleep better at night and so will you.

10. Your Loyalty Means Something to Your Insurance Company

Insurance companies will reward you for loyalty. But just because you’ve been with your insurer for years doesn’t mean you shouldn’t shop around and compare car insurance prices. But, avoid jumping at the cheapest price, especially if they have a reputation for lousy service. Take advantage of the low introductory price and discounts.

Speaking of car insurance discounts…that should be number 11. All insurers offer discounts for a wide variety of things. If you qualify, ask for every discount you can get. The money you can save is quite substantial. Make that a part of your search for the right insurance company for you.

Get an Online Quote for Affordable Car Insurance Today

Whether you’re thinking of changing your insurance company or planning on staying with them, make sure you’re getting the best rate on your auto insurance. Why not get a free auto insurance quote today? You are also welcome to call us at (800) 777-5620 or stop by one of our convenient locations.

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