Shopping for insurance is never fun, but it can be a little less painful if you get a good deal. Luckily, there are actions that drivers of any age can take to lower their insurance rates.
Teens
Insurance rates for teenage drivers are often high because they are considered risky drivers. To make sure you get the lowest rate possible for your teen, use these tips.
- Add your teen to your insurance policy. This is often cheaper than getting a separate policy for your teen driver.
- Encourage your teen to get good grades. Many companies will offer discounts for teenagers who have a B- average.
- Assign your teen to the least expensive car. Some carriers will permit a policy holder to assign drivers on their policy to certain cars. Designate the least costly car to your teen, and inform your insurance company.
Adults
Adults are considered lower risk drivers than both teenagers and seniors. As a result, their insurance rates are typically lower. However, there are several things that adult drivers can do to lower their rates even more.
- Shop carefully. You may think that a large car is more expensive to insure than a small one, but this is not always the case. Insurance companies also take into account the likely damage caused to a car in the event of an accident. A large car will sustain less damage than a small car. Insurance rates are also determined by how often a certain car is stolen and how likely it is that passengers will be injured in an accident. So shop carefully both for the car you drive and the insurance policy you buy.
- Use the same company for all your insurance policies. Insurance companies often offer discounts if you buy more than one type of insurance from them.
- See if your company offers low-mileage discounts.
- Avoid paying monthly. You will be charged an extra $3-$5 a month for this. It may not sound like a lot, but that could add up to $75/year. Pay every six months, if possible. If you have to pay monthly, use auto pay; the monthly charge will be less because a bill is only sent if the amount changes.
- Have good credit. Many companies now use your credit information to determine your insurance rates. They are not allowed to change your rates mid-claim because of your credit, but every car that is added on to your policy is affected.
Seniors
Many seniors are worried about their insurance rates spiking once they hit a certain age. Fortunately, there are several preventative measures you can take.
- Inform your agent when you retire. No longer driving your car to work and back every day will get you cheaper rates.
- Take a mature driver’s course. These state-approved defensive driving courses will often lower rates for older drivers and could even remove points from driving records.
- Find additional discounts. Insurance companies don’t always advertise every discount available. To make sure you are getting all the discounts possible, talk with your agent. For instance, some companies off lower rates for cars that have anti-lock brakes.
Before you buy car insurance, make sure you know exactly what kind of coverage you need. For example, some states require drivers to have liability insurance. Others require personal injury protection as well (in case you need to call your local Calgary injury lawyer). Know what your state requires (and doesn’t) so you only pay for what you really need.
Of course, no matter what stage of life you’re in, you should shop around to find the best car insurance rates. And always drive safely. Safe driving can prevent many incidents that would increase your premiums.
Edson Senna is a freelance writer who specializes in automotive and finance tips. He enjoys getting ideas for his articles from companies like Accident Injury Lawyers.
