Tips for Cheaper Car Insurance for New and Old Drivers

Posted by in Insurance

Are you paying through your nose for a car insurance policy? Since it’s a legal requirement, the chances are that you are begrudgingly handing over your hard earned money to the insurance company. It hurts but it’s a hard-pressed necessity. Even those with a fair understanding of the economic conditions would know that car insurance prices are unlikely to drop anytime soon. However, there are many things that you can do to lessen its impact on your wallet. Let’s check out these tried-and-true ways to save your driving dollars.

Check for a mileage discount

Driving less could be your roadway for a discount. So, don’t be lazybones and walk whenever you can. When you are not driving, you are not a risk for the insurance company because the odds of being in a wreck decrease linearly as you drive fewer miles. So, those who don’t drive too often should check for low mileage discount. Generally speaking, those who drive less than 5000 miles each year can expect a cut in their insurance premium.

Don’t be loyal and shop around

Loyalty is a fantastic thing, but it can at times backfire and cost you boatload of money. There have been cases wherein customers have received jacked up renewal prices at their doormats. In such a scenario, do not hesitate to shop around for better deals. One’s best bet would be to use an online insurance comparison site to save all the hard work. Once a favorable quote is received, one can mention the same to the existing provider. If they can match the best offer received from a rival company, one may choose to be loyal.

Work on your credit score

Interestingly, one of the prescriptions for a lower car insurance policy is good credit score. If your credit score has improved recently, you can reapply for a policy to enjoy discounted rates. For those who have no idea about the correlation, here’s what you should know. It’s assumed that the behavior that leads to bad credit score can also lead to riskier driving. In other words, if you are financially irresponsible, insurance companies assumes that you won’t be a responsible driver either. Hence, those with bad credit scores may have to shave off more money towards the insurance premium.

Pre-pay your policy

Insurance companies would love to lay their hands on as much money as they can. So, if you can afford to pre-pay six months of premium at once, most insurance providers won’t mind slashing the prices for you. In the eyes of an insurance agent, pre-payment is a good behavior, and you will be offered a reasonable discount for this good behavior.

Rural area benefits

If you have recently moved to a rural area, you would be glad to know you have set yourself up for a car insurance discount. The chances of being in potential car collision are significantly lower in rural areas as opposed to a crowded city. Hence, insurance companies don’t mind offering discounts to drivers residing in rural areas with little to no traffic.

Marriage benefits

Goes without saying, it’s not recommended to get married for the sake of insurance benefits. However, if you are already married at the time of taking an insurance policy, you will be considered a responsible adult. Therefore, your marital status will gain you some discounts. On the other hand, if you are a single guy, you may find this unfair. Don’t be jealous because married people need some kind of break too.

Final Verdict

In today’s age, it won’t be an understatement to claim that insurance is a sucker’s game. Unless you play your cards right, you are bound to lose money. Insurance companies have numerous ways at their disposal to fool you around and make you look stupid. After all, statistics don’t lie. The best thing that you can do is avoid being ripped off by educating yourself enough.