{"id":1735,"date":"2019-05-25T17:07:00","date_gmt":"2019-05-25T21:07:00","guid":{"rendered":"https:\/\/smitherwoodinsurance.com\/?p=1735"},"modified":"2020-03-25T18:56:18","modified_gmt":"2020-03-25T22:56:18","slug":"save-money","status":"publish","type":"post","link":"https:\/\/smitherwoodinsurance.com\/resources\/save-money\/","title":{"rendered":"55 Ways to Save on Car Insurance"},"content":{"rendered":"
The average annual cost of car insurance in Virginia is $836, and across the country it\u2019s $982, according to a 2018 report by the National Association of Insurance Commissioners<\/a> based on 2015 data. That\u2019s a lot of money, so you want to do everything you can to reduce the cost of covering your vehicle.<\/p>\n To lower your car insurance premiums, you need to understand how insurance companies set rates. Insurance companies study car accidents and gather huge amounts of statistical data. A computer model compiles information and compares it against your driver profile. Your insurance rate is calculated based on your profile and the statistical data.<\/p>\n The bottom line: You need car insurance. You have to find a way to get the best deal but not limit your coverage. You want that coverage when an accident occurs.<\/p>\n We have compiled a list of 55 ways you can reduce the cost of car insurance. Some of the suggestions will only have minor effects on the rate you pay for insurance on your vehicle, but many of them can lower your by rate hundreds of dollars a year. When combined together, you can reduce your car insurance by 5 percent 10 percent or even 25 percent.<\/p>\n Some insurance companies offer loyalty rewards. It pays to stay with the same company for a long period of time. Generally, the discount is offered to customers with a clean driving record, but sophisticated software is used to calculate the discount. The software understands how sensitive you are to changes in price based on your buying habits and optimizes the price accordingly.<\/p>\n Independent insurance brokers have longevity discounts recognized by insurance carriers. You can get a reduction if you stay with the same broker.<\/p>\n Insurance rates can vary greatly from company to company. Shop around and get quotes from multiple carriers. These rates change yearly, and a carrier that was expensive one year might be less expensive the next. The discounts can be as much as 10 percent.<\/p>\n Insurance companies base insurance costs partially on the type of vehicle you drive.<\/p>\n You should buy a car that is rated safe and reliable by the National Highway Traffic Safety Administration<\/a>. If you want a lower insurance rate, don\u2019t purchase a sports car or small vehicle.<\/p>\n Research has shown that people who drive hybrid or alternative-fuel vehicles are safer drivers, and drive fewer miles. As a result, insurance companies offer a discount to drivers of these types of vehicles. The discount can be between 5 percent and 10 percent but vary between states and your insurance carrier.<\/p>\n Your deductible is an important part of calculating your insurance rate. You can increase your collision deductible to $500 or $1,000 to lower the rate. Realize, however, it\u2019s a good idea to keep your glass and comprehensive deductible low, as these are often less than $500.<\/p>\n You can purchase both liability and collision coverage when buying car insurance. The law requires liability. Collision is coverage over and above liability, and it means your vehicle will be repaired or replaced when you are at fault in an accident. For an older model vehicle, it might not be worth the extra money to have collision insurance, because the value of the vehicle is low. For example, a vehicle valued at $1,000 has a $500 collision deductible. You pay out more in premiums than you will ever get in a claim.<\/p>\n Is your vehicle paid off? You can get a discount if you have the loan information removed from your insurance records. It\u2019s a simple process and can save you money. It shows that you are a responsible person with good credit and a lower insurance risk.<\/p>\n Your older vehicle might not be worth as much money as the insurance company believes. You can lower your insurance rates by setting your vehicle to \u201cstated value.\u201d Your agent can help you determine if a \u201cstated value\u201d policy is the right way to lower your insurance rate.<\/p>\n If you have a home insurance policy, it\u2019s a good idea to add your auto insurance policy to it. Bundling insurance policies will lower your rates.<\/p>\n If you have multiple insurance policies on items such as a home, jewelry, a boat, ATV,<\/p>\n or rental properties, you can bundle those under one carrier. Insurance companies offer a discount when you have multiple policies through them.<\/p>\n Your credit plays a role in how insurance companies set your rates. They assume you are more responsible if you have a higher credit rating.<\/p>\n If you drive a commuter car to work and drive a different vehicle on the weekend, your insurance agent needs to know that. Insurance companies assume you drive the pleasure vehicle less and might lower your premium.<\/p>\n It\u2019s easy to pick the cheapest insurance rate, but that is not always the best way to save money. Second-rate insurance companies often add fees and other expenses to your premium. Also, a top-rated insurance company might be more expensive, but if you file a claim, it is more likely to offer a fair settlement.<\/p>\n Many insurance companies offer discounts for students. The discounts are given to both college and high school students and are often based on your grades. Students with \u201cB\u201d averages should qualify for discounts.<\/p>\n You can get a discount when you\u2019re away at college, and you garage your car at your parent\u2019s house. Often, your parents have to live more than 100 miles away from school. Insurance companies assume you are driving the vehicle less due to the distance.<\/p>\n A driver\u2019s education class will teach basic driver\u2019s safety and the rules of the road. Insurance companies can give a discount to young drivers who have completed a driver\u2019s education class. They\u2019re readily available and often involve both written and on-the-road training.<\/p>\n Teenagers are high-risk drivers. Limit the number of teen operators on a policy.<\/p>\n There is a correlation between a vehicle\u2019s value and the cost of insurance. You don\u2019t want a teenager driving an expensive vehicle. You should have them drive a dependable vehicle but one that is low in value if you want to save on your auto premium.<\/p>\n Insurance companies slap a surcharge for drivers under the age of 25 because of their lack of driving experience. Ride public transportation or a bike until you\u2019re 25 to save on car insurance.<\/p>\n Speeding tickets and other moving violations impact insurance rates. Insurance companies believe you are higher risk when you have a bad driving record.<\/p>\nInsurance companies reward loyalty<\/h3>\n
1. Get a loyalty discount<\/h4>\n
2. Stick with the same independent insurance brokers<\/h4>\n
3. Get multiple quotes<\/h4>\n
Check insurance rates on the car you drive<\/h3>\n
4. Compare insurance costs before purchasing a car<\/h4>\n
5. Drive a hybrid or alternative fuel vehicle<\/h4>\n
Structure car insurance policy properly<\/h3>\n
6. Get higher deductibles<\/h4>\n
7. Reduce coverage on older cars<\/h4>\n
8. Remove \u201clien\u201d information from insurance records<\/h4>\n
9. Set older vehicles to \u201cstated value\u201d<\/h4>\n
10. Buy auto insurance through your homeowners\u2019 insurance carrier<\/h4>\n
11. Bundle policies together<\/h4>\n
12. Maintain a good credit record<\/h4>\n
13. Separate your commuter car from your \u201cpleasure only\u201d vehicle<\/h4>\n
14. Pick a Top-Rated Insurer<\/h4>\n
Understanding insurance for young people<\/h3>\n
15. Ask for a student discount<\/h4>\n
16. Garage vehicle at parent\u2019s house<\/h4>\n
17. Take a driver\u2019s education class<\/h4>\n
18. Limit the number of teenage drivers<\/h4>\n
19. Make your teen drive a dependable but less valuable car<\/h4>\n
20. Don\u2019t drive until you\u2019re 25 Years Old<\/h4>\n
Be a safe driver<\/h3>\n
21. Be a responsible driver and follow the law<\/h4>\n
22. Don\u2019t get a DUI<\/h4>\n