Are you tired of paying an arm and a leg on your car insurance?
Most drivers eventually come to the realization that they are paying too much on their monthly premium, or at least that they could be paying less. In today’s economy we all need every penny we can get, so throughout the rest of this article I would like to talk to you about five important tips to get very cheap car insurance.
Please Note – If you’re already signed up with an insurance company and you have been with them for a while, it may not be worth it to jump ship and switch to a different provider (since many companies take loyalty into consideration). However, that doesn’t mean you can’t talk with your agent to see if there’s any way that you can refinance your insurance coverage to get a cheaper rate.
You don’t have to feel trapped in a prison of high car insurance rates anymore; everyone can save money on their car insurance, you just have to know how. Keep reading to find out!
Tip #1. Have a Good Driving Record
This is the first and most crucial factor that most insurance companies take into consideration when giving you a quote. If you have a bad driving record, whether it’s for anything from an accident involving injury to a series of minor traffic violations, then you are going to be paying up to 50% more each year on your auto insurance.
Conversely, having a spotless driving record with no accidents or traffic violations of any kind will likely make you eligible for “safe driver” status, which always translates to cheaper monthly premiums.
Tip #2. Take a Defensive Driving Course or Driver’s Education
Many insurance companies these days offer you the opportunity to lower your rates if you prove your dedication to safe driving by taking a course on defensive driving or something similar.
The price of these driver’s education courses can range from anything to $50-$500; they’re definitely not always cheap. But when you consider that you could earn that back inside of just 1 year with very cheap car insurance, it makes absolute financial sense to take one of these courses. Yes, most of them are boring, and some of them are outrageously expensive, but it’s almost always worth it in the end.
Tip #3. Buy a Car With High Safety Rating
Almost all insurance companies will look at the safety rating of whatever car(s) you need insurance coverage for before giving you a realistic quote. This makes sense, since a safer car is much less risk for the insurance provider thanks to the decreased likelihood of injury from an accident.
If you have room in your savings to buy a new/used car with a significantly higher safety rating than the one that you’re driving right now, then it may be worth it to do so in the long run because of the money you will save on your insurance rates.
Tip #4. Ensure You Show Solid Financial History on Car Payments
Your credit score has an impact on many things, and one of those things is insurance of any kind. If an agent can see that you have a stellar credit score and that you’re very unlikely to ever miss a payment, then you are much more likely to receive very cheap car insurance. If you have a lower credit score, then to the insurance company you are less likely to make your payments on time – if at all – and the quote they give you will reflect that.
Before you start shopping around for auto insurance, get a credit report and see if there’s anything you can do to improve your credit score.
Tip #5. Compare Rates, and Tell Your Agent
Insurance agents make money when they refer a customer to the insurance company that they are affiliated with. In fact, many times they receive a lifelong commission for each coverage plan they facilitate.
What this means for you is that if your insurance agent knows that you’re shopping around, they may be able to offer you a discount to sweeten the deal. Your average insurance agent would much rather take any money over no money at all, so if you make it clear you’re still comparison shopping, then you’re more likely to get that very cheap car insurance you’re looking for.
Truth be told, there are probably 100 different ways to lower your insurance rates and get very cheap car insurance, and I’ve only barely touched the surface of what you can do in this article. However, if you take to heart the tips outlined here, I can almost guarantee you that you will be able to save money on your auto insurance without sacrificing coverage. Even if it takes you a few months to save up for a safer car or to fix your credit score, persevere and you will have more money in the long run.
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