Finding auto insurance on a budget can be tricky. At Affordable Insurance, to make things easier for you, we have compiled our top 10 tips for saving on car insurance.
Teenage drivers should try to stay covered by their parents’ policy as long as possible. Individually insured drivers between the ages of 16 and 19 pay the all-time highest premiums for car insurance because of their lack of experience. At age 19, 21 and 25 you should see a significant drop in your premium.- Try to maintain continuous insurance coverage from when you first start driving. Your rate drops by over 7.7%after being insured for just one year.
- Pay for your plan up front. Choosing to pay by installments increases the cost of your insurance by an average of $62. That is $62 you can save by simply paying in full when you purchase the policy.
- Find out if you can bundle your car insurance together with your homeowner’s policy. This can save you more than $100 per year. If you are not a homeowner, but still have insurance for your rented house or apartment, it is worth bundling your policies. For renters, the savings average at 5.5% or $72 annually.
- Your choice of vehicle can have a huge impact on the cost of your premium. Minivans and SUVs are the cheapest to insure, whereas a luxury car or hybrid vehicle will incur the highest insurance prices.
- Maintaining a good credit score can go a long way in reducing the price of your auto insurance. Drivers with poor credit pay more than double the amount paid by drivers with excellent scores. Even by moving your credit score up one tier, you can save 17% on your yearly premium.
- If you move to another state, it is a good idea to shop around for a new insurance policy. There is a huge variability in insurance prices between states, so you may be able to get a better bargain once you move. Also, try to be aware of state-specific traffic laws and understand how violations can affect your insurance cost.
- Always choose the paperless option if it is available. Signing your documents electronically and managing your policy online can qualify you for extra discounts. Also, you are doing your part for the environment and less likely to lose key documents if you have them saved on your computer and phone.
- Avoid a DUI at all costs. A DUI charge is the one thing that can instantaneously increase your insurance cost by 80%, and much more in some states. Stay safe on the road and avoid unnecessary extra charges.
- Don’t stick with the same insurance provider just for loyalties sake. Every few years, shop around for a lower price on your policy. As your situation changes regarding age, experience, marital status and credit rating, you may become eligible for much better deals.
Teenage drivers should try to stay covered by their parents’ policy as long as possible. Individually insured drivers between the ages of 16 and 19 pay the all-time highest premiums for car insurance because of their lack of experience. At age 19, 21 and 25 you should see a significant drop in your premium.Follow these top 10 tips for saving on car insurance and get the best value for your money.