Auto insurance is something that people have been trying to figure out how to lower since it was invented.
Obviously, it is a bill that has to be paid, yet we always seem to be surprised at the listed rate. People get made at cable companies for their hidden fees, but at least they are honest on the bill about how they reached the total. While, on the other hand, the fees that come along with car insurance bills simply remain hidden, yet you are expected to pay the amount without asking any questions at all. Today we are doing the unthinkable and telling you the secrets to cheaper auto insurance.
Being Female Helps…
It has been shown that woman pay 12% less than men, on average. This means that men are going to pay an extra $15,000 more on their auto insurance doing their driving life than women. The reason why they pay more is that they drive more aggressively, resulting in them having to file more claims.
Education Plays a Part
The level of education that you have received is another factor that comes into play when you auto insurance rates are being calculated. Many people feel that this is discriminatory yet the bottom line remains that this is something that has withstood the challenges of the courts. To find out more about this issue check out this resource. You will find that a person with only a high school education is going to pay more than someone who has at least his or her bachelor’s degree.
Credit History Has a Lot to Do with Your Quote
Credit score is the key factor when insures are coming up with your quote. This is because they want to make sure that you are financially responsible when it comes to paying your bills. This is something else that has been brought up in court as well, but it is still holding up. However, in California it is illegal for insurers to factor in a person’s credit score when they are giving them a rate.
Location is Important
Where you live plays a large portion in regards to how much you are going to spend on your car insurance. For example, Louisiana is the highest premium state in the country but if you move to North Carolina, you will save $1500 annually. Even a small move from Washington D.C. to Virginia can save you $50 a month.
Young and Old Drivers Pay Higher Premiums
Younger drivers are the ones who pay the most in insurance. Usually your rates are the highest when you are 18 and they decrease gradually until you reach the age of 25. After 25, you can expect your rates to stay consistent for about the next 30 years. Then, you will see them rise again between the ages of 55 to 65 and skyrocket once you hit the 75 year mark.
Limit Your Policy
There are varieties of ways that you can reduce your risk as an insurer. Limiting your mileage is the most obvious and well-known option, but plenty of insurers offer discounts for those who only drive during the daytime and occasionally those who drive away from main roads. Think about how you actually drive and tailor your policy to what you need.
Name Your Drivers Carefully
Having young or risky drivers on your policy can massively increase the policy premium, so think hard before adding additional drivers. If you have young students who only return at Christmas and during the summer, then add them on to the policy only for these months to avoid paying for their risk all year around.
Try Telematics
Good drivers can save money if they are able to demonstrate that they are good drivers using a telematics device or a ‘black box.’ Insurers can analyse your driving statistics and make sure that you are using your car safely and as agreed. You can show that you are a less risky customer than others are and so deserve a better price.
Rethink Your Security Arrangements
Theft is a big deal for all policyholders, and as such, preventing theft can save you money. Many insurers offer discounts for: additional immobilisers, steering locks, and just storing your car in a garage overnight.
Switch Your Premiums Frequently
Of course, no insurance company is going to tell you to move away from their policy, but most insurers will use introductory discounts to bring you in. Take advantage of these as often as possible, but remember that a cheap price is no substitute for a quality policy with the right insurer.
Bottom Line
Overall, insurers are not really keeping these tips secret yet at the same time they are not forthcoming with them either. However, as with anything else, if you want to shop smarter it is important to make sure that you are knowledgeable on the subject. With the tips that we have provided you in this article, you should be able to lower your insurance premiums. One company that is sure to be able to help you out is MotorQuoteDirect.
