How to Get Lower Car Insurance Rates, the notes:
#1 Don’t Assume Any One Company is the Cheapest.
For a good driver with good credit the difference between the best and worst insurance is $100/mo.
For a driver with poor credit and driving activity the difference can be over $200 per month less.
The difference on average in a given state can be double between the highest and lowest price.
Now from state to state the same company is the lowest in Michigan could be the highest in another state like Florida. To make sure you’re getting the lowest rate I will link an independent agency that quotes multiple companies through a live agent in the description below.
#2 Don’t ignore local and regional insurance companies
Each driver’s situation, location, credit, needs are different. There is not one company that is better priced than another in any given area. Progressive gives a large discount for paying in full where AAA gives one for low mileage use. The best way to determine which company is best is to work with an independent agent outside of your large companies like State Farm, Allstate and Geico. Get a non-regional quote here: Click
#3 Improve your credit
In almost every state minus a select few such as Hawaii, California and Massachusetts credit plays a large factor in your insurance costs. Your ability to pay bills has been proven to correlate with the risk of tickets and accidents for a driver.
Ways to raise your credit.
- Make all your loan payments on time
- Keep credit card balance below or near half of your limit
- Don’t use your credit for checks on any loans or open new accounts
- Limit the amount of credit you have available
#4 Consider insurance cost when buying a car
Cars, vans and SUVs are all categorized different and can also cost as much as $100 per month more depending on the make and model you buy. When you shop for a new car always make sure you can afford the insurance on top of the payment. The difference between a Honda Civic and a Acura MKX is more than $50 per month different.
#5 Check for the discounts
Even with your current insurance most people are missing some of the discounts they are qualified for.
Because there is not an exact way to determine who is going to be a better driver than another most insurance companies have added discounts for certain variables that on average show a lower risk. For example when you have better credit and own a home you are statistically less likely to have less accidents that are due to your fault which will lower the price you will pay for insurance.
As I mentioned in the beginning of the video as a reward to those that watch the whole thing I am going to disclose 15 important discounts(YouTube link) insurance companies offer.
#6 clunker car, consider dropping comprehensive and collision
If you drive a Junker, then you just don’t need to carry those extra coverage like comprehensive and collision. If the value of your car is worth less than 4 years of the price you pay for comprehensive and collision, then you may want to consider removing those costs.
#7 Consider a bigger deductible
Raising your deductibles lowers the amount of risk the insurance company has by putting more responsibility on you. If you have a $500 and raise it to $1,000 that can save you $100 or more per year. What I recommend is having a saving to cover your deductible in the event of a loss.
#8 Consider usage-base option
Usage base insurance is one of the largest discounts you can control. Companies like Progressive Snapshot and AAA Smart-drive are offering discounts for usage based insurance where you prove you are a better driver than average. The common discount is anywhere from 3-25% off. Before you take advantage of this. The lower miles you drive can help with the right company.
When you move keep in mind that your location in most states plays a very large factor in the cost of your auto and your home insurance.
#10 Driving record
Make sure you don’t file unnecessary claims. Even though small claims like windshields and rock chips can be free or cheap depending on the company you are with it could cost you a lot more than you expect. After 3 comprehensive claims a lot of companies will put you in a different tier which could raise your car insurance as much as 40%.
#11 Pay in larger amounts
If you pay your policy bi-monthly, quarterly or even in full for the year you will save money not only in fees that are charged for processing monthly but most companies give a hefty discount if you pay it in full.