One way that drivers can save money on car insurance is to compare auto insurance quotes online to find the lowest rates. Car insurance sites offer free quotes from multiple insurance companies so drivers can compare auto insurance quotes side by side and get the best car coverage and cheapest premiums. Drivers can also take measures to lower the cost of their auto insurance by maintaining a good driving history, taking advantage of discounts, and learning about the different factors that affect their insurance rates.
Good Drivers Get Low Rates
The lowest car insurance rates are for reserved for drivers over the age of 25 with no accidents and no moving violations on their driving records for at least 3 years. Observing traffic laws and driving responsibly can pay off in dollars and cents through Progressive’s Snapshot Discount or Allstate’s Drivewise Discount.
Many companies offer special “Good Driver” discounts of up to 25% off to drivers with no tickets or accidents for 3 to 5 years, which adds even more savings for good drivers. While comparing insurance quotes, make sure you get the “Good Driver” discount subtracted from your premiums to get the greatest savings on car insurance.
The Family Car
The car a driver owns makes a difference when comparing rates and coverage options for different make and model cars. The lowest rates are for vehicles that are considered family cars. These include SUVs, crossovers, minivans and sedans. The Insurance Institute for Highway Safety (IIHS) uses collision tests to rate cars for safety and cars which rate well are cheaper to insure.
A number of publications, including Forbes magazine, publish a list of cars with the lowest rates. This is particularly helpful for families who are shopping around for a new car, and will allow drivers to compare insurance rates for different vehicles before purchasing.
Luxury Car Rates Are Higher
Even though some luxury cars are considered family vehicles, the insurance rates for expensive models are higher than for mid-priced cars. Insurance companies consider the cost of vehicle repairs and replacements when calculating rates for a policy’s coverage, and simply put, luxury cars just cost more to insure and repair than other types of vehicles.
When drivers compare auto insurance quotes, they will find that the cost of insuring a luxury SUV is much higher than the cost to insure a mid-priced model, although luxury models usually do well in IIHS testing.
Safety Options Get You Cheap Quotes
Since car alarms and security systems reduce the risk of theft, most car insurance companies offer discounts for this equipment. Safety features and equipment such as airbags, collision avoidance systems, anti-lock brakes, rearview cameras and passive restraints can also reduce the cost of car insurance quotes.
As drivers get free comparisons, they should include information about safety equipment and anti-theft devices on their car to get the most accurate rate quotes for liability, collision and comprehensive insurance.
The More You Drive, The More You Pay
Living close to work is a great way to save money on auto insurance rates. Rates are partly based on the number of miles a driver travels in a year, since the more miles a driver travels, the greater the chances the driver will be involved in an accident. Accordingly, car insurance companies apply a “Low Mileage” discount for drivers on the road less than 12,000 miles a year.
Drivers who use public transportation and only drive their car for pleasure generally get the lowest rates. When completing a car insurance quote comparison, compute your premiums based on a variation of annual mileage figures to see the difference in rates.
Location – Where A Car Is Parked Makes A Difference
Drivers who park their cars on city streets have higher car insurance rates than those who park their cars in a garage. Parking in a garage reduces the risk of damage from vandalism, theft and weather, such as hailstorms, flooding, and fires, and insurers consider these factors when rating policies and risk. Drivers should make sure to note where their car is usually parked when they get auto insurance quotes since this can substantially impact the rates for comprehensive car insurance coverage.
Discounts For Education
Young drivers can take advantage of discounts for driver education courses and all drivers can get discounts for defensive driving courses. Most companies offer discounts of up to 10% for 3 years for drivers that successfully complete a defensive driving class. The classes are inexpensive, usually costing up to $50 at most, do not take much time and are available online.
Drivers should include information about any driver education courses they have completed in the last 3 years while getting quotes; if the online form does not allow you to input this information, choose the company with the best car insurance quotes, call a customer representative and ask how much a “Driver’s Education” discount would lower their rates.
While conventional wisdom says that sticking with just one insurance company may be a bad idea, when drivers buy all their insurance policies from one company, they get great discounts. Individuals who buy health, life, homeowners and/or auto insurance from the same company can get bundling discounts of up to 25% on each policy. When consumers are buying car insurance, they should consider the discounts they receive on all their insurance policies before deciding to change their car insurance company.
Check Credit Scores
A good to excellent credit score allows an individual to get lower interest rates on bank loans and credit cards, but what most people don’t realize is that auto insurance companies also use credit scores to determine risk profiles for drivers and award cheaper rates on policies.
People who demonstrate responsibility in their finances are more likely to be responsible behind the wheel. Check your credit scores and try to improve them if possible. Look for errors and have credit bureaus correct your history to raise scores quickly.
Accidents and Car Insurance Rates
If a driver is not at fault for an accident, it should not raise insurance rates. Driving records may not show whether a driver was at fault for an accident. If an insurer raises rates for an accident that was not the driver’s fault, the driver can get their rates reduced by producing a police report or proof that they were paid for their damages by another driver’s insurance. If your auto insurance rates increase from one year to the next, ask your current insurance company about any potential issues in your driving history that may be to blame for the increase in premiums.
How To Compare Auto Insurance Quotes
The easiest way to compare auto insurance quotes is to go to an independent car insurance website and get quotes from multiple insurance companies for free. While insurance companies have their own websites, most only provide quotes for their own policies. This means drivers must visit several carriers, such as GEICO, Progressive, AllState, Farmers, and AAA, individually and complete several questionnaires to compare auto insurance quotes. Drivers only need to complete one form to get free and instant car insurance quotes from several companies. Quality quote comparison sites do a great job of describing how to get the best car insurance.
While drivers can save money when they get auto insurance quotes online, they can also take other measures to reduce the cost of their car insurance. Finding discounts and correcting errors in driving records and credit scores can lower the cost of insurance.
- 1 Good Drivers Get Low Rates
- 2 The Family Car
- 3 Luxury Car Rates Are Higher
- 4 Safety Options Get You Cheap Quotes
- 5 The More You Drive, The More You Pay
- 6 Location – Where A Car Is Parked Makes A Difference
- 7 Discounts For Education
- 8 Multi-Policy Discounts
- 9 Check Credit Scores
- 10 Accidents and Car Insurance Rates
- 11 How To Compare Auto Insurance Quotes