As an insurance agent I get asked all the time by people "Can't you get me cheaper rate?" "How can I find a lower price?" "Who has the cheapest price?". The problem with all these questions is each person's situation is different. Insurance pricing is based on a few different factors, a few examples are: Credit: Yes, the better the credit you have the better rate you will get. Insurance companies weigh this heavily as statistics show that the lower the credit score a person has the more likely they are to file large or frequent insurance claims Age: If you are 18 years old you are going to pay more than your 45 year old parents. The younger you are the less experience you have. Driving Record: Those with tickets and accidents will have a higher rate for obvious reasons. If you want to avoid any surcharges then slow down and pay attention. A simple speeding ticket will haunt you for 3 years while an accident no matter how minor will follow you for 5 years. Type of Vehicle: A newer vehicle will cost you more especially if you carry full coverage insurance. Full coverage a.k.a collision and comprehensive coverage will pay for the vehicle in case of an accident, theft, flood, etc. The more the car is worth the higher the premium for that vehicle. While there is not coupon for insurance purposes or a magical company that is offering bargain basement prices on insurance a few tips I like to tell people are: Use an INDEPENDENT agent you can trust: Independent agents are not tied to one company in particular. They shop multiple carriers for you so you don't have to. They give you the lowest rate they can instead of just one option Also if your rate goes up for no particular reason in the future they can requote your policy for you. A good relationship with an insurance agent in invaluable. Coverage: If you have an older vehicle educate yourself enough to know when to remove full coverage. If you are paying an extra $100 a month to have full coverage on a vehicle that is only worth $2000 that's not cost effective in the long run. Ask for Discounts!: All companies are not created equal so make sure and ask your agent to let you know of any discounts that might be available to you.Some insurance carriers give you a discount just for being a college graduate! That can be a 5-10% savings a month alone. Do you have a car that doesn't get driven a lot? Ask for a low mileage discount or to have the car rated as pleasure use only. This does not compromise your coverage but can help lower the rate slightly. I hope this is helpful even in the slightest. You have to have auto insurance but you don't have to be limited in knowledge or your options. Best of luck and remember to DONTPAYFULL!
Yes this has actually helped me a lot! It has certainly made me re-think my current plan. I am extremely low risk, and yet I have been paying a LOT for car insurance for over four years now. Thanks for this post!
Car insurance is one of things that we all have to have and we all hate paying for it. If you educate yourself enough and create a relationship with an agent that has options for you then you will save money upfront and continually know they are always offering the best rate available to them. Its worth it to learn even just a bit about car insurance. Its not the most interesting thing in the world but no one likes to pay for something they don't even know much about.
I actually did find your information interesting, as well as being helpful. The main thing I usually stress to people is to always keep updated on discounts. There are discounts for a variety of things, but you usually have to ask. Even a good agent doesn't always keep up on everything without a little nudging from time to time. There are discounts for being over 25, for being married, multi-vehicle discounts, and more. You can also ask for a reduction if you've had a ticket or accident in the past, once it's been a few years (often three years) since the issue occurred. Being removed from any "high risk" category is helpful, but you'll usually need to inquire about it.
Thanks for the helpful advice. I can attest to the raised rates for tickets. My fiance got a ticket back in December and our rates went up as a result, I was so angry because I had just got the rates lowered for having a good driving history. Now I have to wait another 6 months for us to start getting the incremental decreases!
All companies have different stances on tickets. While 1 ticket can make your rate go up slightly, it shouldn't go up drastically. If it has I would shop around. Some insurance carriers have stricter rates than others. You might find that even with one ticket you can still save money. Its always worth a try.
Another thing I like to mention - If you are already insured with an independent agent and you are still not happy with their options do try a "captive" insurance agent such as Allstate, Farmers, or State Farm. Most likely your insurance agent has already tried a number of companies so you might as well check and see if a one company carrier has a better rate. Even if they do not have a better option at least you have the knowledge.
This was super helpful! It's crazy how much companies will charge new drivers because there is no proof that they wont get in an accident. Insurance companies base there trust on your paper work and that hardly rules in favor of the people.
I was just discussing this with a friend the other day. I'm getting most of the discounts I can, but am going to check to see if my local library has Defensive Driving, so I can take the course and get that discount, as well.
I found your piece very informative. Another discount that a lot of people don't know about is having your home and auto insurance with the same insurance company. This also holds true for auto and renters insurance. Ask for it! Independent agents work on commission, so not all agents are willing to dish out the information on discounts your first year with them. Some hold back and wait until you've been insured with them for a full year before they start offering these things. You really have to advocate for yourself and ask about what might be available.
Very useful information there. I got a 2-year-old car, that is pretty much in good condition. After reading your article, I think I can save some money by doing away with full coverage. I drive responsibly and get it serviced on a regular basis. I don't anticipate any breakdowns in the immediate future. I shall, however, talk to my agent before doing the same. Thanks for your informative article!
I think this post is very informative and helpful indeed. I would say that it's true when it comes to your car and having to spend on insurance and it can be a bit of a bummer sometimes, but after reading this article you can realize there's a way to save on it, lol.
Luckily for me I don't have to "hunt for my food" and I am not commission only. I like to be give people the bottom line price!
Great info! I have one of those little boxes that just plugs into the 'cigarette lighter' plug and it basically just checks whether you're driving well., not braking to hard, breaking speed limits all the time, etc. Its not restrictive at all and is lenient to some bad behavior (I'm from perfect and I have had gold standards so far! ) and after 3-4 months you send the box back and if you drive well you get an insurance discount
Is it true that some companies will give discounts depending on how much mileage you drive in a week's time? e.g., little old ladies that have their car parked in front of their apartment most of the time?
