Saving on Auto Insurance: How To Lower Your RatesAugust 23, 2012
Auto insurance can be one of the major expenses in a family budget, and the cost of this necessity is on the rise. Although it is against the law to drive without insurance, you can find ways to save and reduce your premiums. No matter your age or level of experience, there are simple methods of getting a more affordable auto insurance rate right now. Depending on the age group of the driver, there are different ways to save on auto insurance.
New drivers are among the most expensive to insure as they are inexperienced and statistically more likely to be involved in an accident. While you may pay more for a policy on a young driver than you will on a more experienced driver, there are ways to manage the costs and stay within budget.
- Good Student Discounts. Many insurance companies offer a discount for students who carry a minimum required grade average. Young drivers who are also students can save by keeping good grades – be sure to inquire about this option, as it may not always be advertised.
- Driver Education Courses. By taking a driving education course, a young driver is able to absorb a lot of useful information that will help them drive safely, and reduce their risk profile with the insurance company. Choose your Car Carefully. A young driver with a sports car is likely to receive higher rates. Consider an older, reliable and economical car – as it may help drive down some of the cost of covering an inexperienced driver.
Drivers Over 25
Once you are no longer paying the rates of a new and inexperienced driver, you will see some improvement in your yearly premium. Still, there are plenty of ways for drivers who are over 25 to find ways to save.
- Shop Around. Once you have several years of driving behind you and have a good driving record, you should take the time to shop around for better car insurance quotes. Every insurance company rates things a little differently, and your current company may not have the best rates for your situation.
- Ask About Discounts. Make sure you are getting all of the discounts available to you from your insurance company, and the only way to make sure is to ask. Some of the discounts available may include, installing a security system on your car, driving an eco-friendly car, or installing safety features such as winter tires.
Combine Policies with your Spouse. If you are getting married, consider combining the two policies to take advantage of bulk discounting by having more than one car insured with the company.
There are benefits that come with time and one of them is qualifying for better insurance rates. Because the insurance industry is highly competitive, there are plenty of programs today that reward experienced drivers for their good records with better rates. Look into some of these ways to save:
- Consider your Deductibles. If you are financially stable and have a good driving record, a good option to consider is to carry higher deductibles on your policy. You will pay less in premiums over time. Of course, you will have to pay a larger amount out of pocket in the event of a claim, but if the odds of that happening are low, your overall savings will make up for it.
- Combine your Policies. If your home insurance and your auto insurance are not currently with the same company, you could be saving a lot of money by bundling them up with one insurance provider. Most companies offer multi-policy discounts, so have each company offer quotes for all of your policies to see how much you could save.
- Stick Around. This may not be the best time to switch companies unless the savings are significant. Many insurance companies offer great longevity discounts for staying with them, so make sure that any costs savings you may get from a new rate outweigh the loyalty discount you may be currently receiving.
Drivers Over 55 Years
Mature drivers over 55 years old can qualify for some of the best rates on the road. As you near retirement, you may find yourself constrained by fixed income. Therefore, it is more important than ever to make sure your monthly expenses are affordable – including car insurance.
- Companies Catering to Mature Drivers. Today there are companies across Canada who specialize in getting the best rates for drivers over 55. It’s a good idea to take the time to get a few quotes and see how much you can lower your rates.
- Retirement Benefits. When you are no longer commuting to work every day you can qualify for a lower rate. Make sure your insurance company knows you have retired and changes the commuting status of your car to pleasure use so you can pay less.
Of course, regardless of how old you are, it is always a good idea to shop around for a better rate. Comparing auto insurance quotes from various companies is the number one way to find lower premiums and pay a lot less for car insurance. Take the time to obtain quotes regularly so that you know you are always getting the best deal.