Car insurance can be expensive, especially for non-standard drivers. No matter what stage of life you’re in, however, there are ways to pay less for car insurance.
First, it’s important to understand what factors affect your car insurance. Some factors are out of your control, such as:
In general, males pay higher car insurance premiums than females. Car insurance rates are also more expensive for drivers beneath the age of 26. Even if you drive an affordable vehicle, your insurance may be higher if you’re surrounded by expensive or classic vehicles. These factors are generally unavoidable when applying for car insurance.
There are even more factors that you can control, however, including:
- Vehicle value, size and age
- Safety rating of insured vehicle
The reason these factors affect your car insurance rates is that the insurance company calculates the likelihood that you will file a claim. Drivers with a poor driving record are more likely to file a claim, meaning the insurance company will charge more to compensate. There are ways to lower your insurance rates, however.
- Carefully consider the insured vehicle.
Certain vehicles are expensive to insure due to their value and size. Newer, larger vehicles will typically cost more to insure than smaller and older vehicles. Instead of buying a new vehicle, it may be more cost-effective to invest in an older vehicle.
- Build your credit.
Most insurance companies consider credit history when calculating car insurance quotes. Build your credit by paying off debts, loans and credit cards.
- Maintain a clean driving record.
Even small violations such as speeding tickets can influence your car insurance rates. Drive carefully and defensively to avoid accidents. If you already have a poor driving record, it’s not impossible to find affordable insurance. You can still drive carefully so the violation on your record falls away.
- Shop around.
Some insurance companies have more forgiveness than others. It helps to compare quotes from multiple insurance companies before deciding who to insure with. There are also insurance companies that specialize in insuring non-standard and high-risk drivers. These companies typically don’t take credit scores into account.
- Lower the amount of coverage on your vehicle.
It’s important to carefully consider what insurance your vehicle needs. In most states, including Virginia, you must carry a certain amount of bodily injury liability and property damage liability. Other coverages are optional, however. Recommended coverage besides liability includes:
- Comprehensive Coverage: This coverage provides compensation for damages done to the vehicle due to fire, theft, vandalism, windstorms and more.
- Collision Coverage: Collision coverage provides compensation for damages due to a collision.
- Uninsured/Underinsured Motorist Coverage: If you crash with a motorist who doesn’t carry insurance, this coverage helps pay for the damages.
Additional optional coverages may not be necessary. Go over your policy with your insurance agent carefully. Not all older vehicles will need what is considered “full coverage.”
- Consider your options before filing a claim.
Your claims history matters when it comes to insuring. Before you file a claim, consider the cost. If the cost of fixing the damage is less than the cost of your deductible, it’s probably worth simply paying to fix the damage out of pocket.
- Look for Discounts.
Insurance agencies want you to sign with them. They offer discounts to clients and potential clients, so make sure to ask about what discounts apply to you. Common discounts include:
- Mature driver discounts
- Good student discounts
- Defensive driving discounts
- Good driver discounts
- Low mileage discounts