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How to Lower Your Car Insurance Costs

Updated on November 1, 2012


The trick to finding the cheapest auto insurance coverage is knowing what insurance companies are looking for when they offer you a policy. Often there are several key factors that you can actively work to improve that will in turn reduce the cost of a contract. Some are unchangeable such as age and others reflect your past driving habits but by analyzing some the elements involved we can make strides to identify what makes up your car insurance costs and what we can do to lower those premiums.

To begin with let's quickly review what you cannot (in most circumstances) change about yourself and then move on to some of the things you can change.

Young Drivers are More Expensive


The Unchangeable


For drivers under 25 or over 60, insurance premiums tend to increase due to the fact that historically these demographics are more at risk for accidents due to either inexperience or delayed reaction time. Although these rates can be lowered and we discuss how later in the article, you'll generally find that your age will effect how much you are charged by your insurance broker.


Although the EU has declared that insurance companies may not discriminate on gender, the US still permits differing rates among female and male drivers. Men spend more time in the car and have higher rates of accidents than woman which leads to higher insurance costs. Regardless of whether this is fair or ethical, the fact remains that some companies will charge you more based on your gender.

What You Can Change Long Term

Driving History

Once you do start driving you have the opportunity to prove yourself in terms of your ability to act safely. Each year where you drive safely accumulating either little or no demerit points your insurance tends to go down as you 'prove yourself' a safe driver. If you do rack up a large amount of damage or insurance claims it's likely your premiums will increase and the only way to minimize costs is to become a better driver.

Credit History

A solid credit rating and history will help your rates to decrease as it indicates you are financially stable. Proving you are capable of handling a financial situation if it does arise is a definite positive in the eyes of an insurance company. If your credit rating is poor, making strides to improve it can help to lower your monthly or yearly rates. Marital status is also an indicator of financial stability to some insurance agents as being married can demonstrate you are able to continually provide for a family.

Driver's Ed


What You Can Change Now

Type of Car

If you are in the position to purchase a new vehicle note that some are cheaper to ensure than others. Motorcycles, sports cars and sedans all have drastically different insurance rates based on the fact that accident frequency for each type of vehicle ranges wildly. Choosing a safe vehicle with a low accident rates will encourage your insurer to offer you a discounted rate. Doing the opposite will raise costs.

Drivers Ed.

Engaging in drivers education courses, particularly if your a new driver can help lower your insurance fees. This is an excellent shortcut to improving your driving history as certain courses are recognized by state and country and will reduce expenses. Although there is a limit to the reduction you can receive by taking drivers education courses it's definitely a smart move to take.

Driving Frequency

Although not everyone can change how often they drive, minimizing the use of your car will lower costs. If you only drive a couple of times a month you pay much less than someone who is a daily driver. Consider taking public transit or walking/biking to your destination instead of driving. These other options are both cheap and eco-friendly.

In Conclusion...

This sums up what to be aware of when you want to lower your car insurance rates. Note that some companies who offer full coverage auto insurance will provide perks and benefits if you choose that option. Combining this with the changes you can make both now and in the long term will help you to drastically reduce your overall auto insurance costs. Visit us for high quality website design


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