Are You Paying Too Much for Car Insurance?
If you have ever owned a car, you know the importance of having insurance coverage on your automobile. You are probably familiar with the process of calling around to different companies trying to get the best car insurance quotes for you and your family.
Car insurance can vary based on the state you live in, the insurance company, your age, make and model of your car, and more. Are you paying too much for car insurance? Let’s find out if you’re paying too much and what you can do to lower your rate.
6 Life Changes That Can Lower Your Insurance Premium
- You Got Married
It may seem biased, but believe it or not, if you are married vs single, you will most likely pay less for car insurance. Insurance companies evaluate data and through their findings decide that married people are less likely to get into a car accident because they are safer on the road. According to the National Library of Medicine, “After taking age, sex, and other variables into account, never married people had a substantially higher risk of driver injury than married people. While requiring corroboration, these findings imply that it may be appropriate for driver injury countermeasures to be targeted to never married people.” If you recently got married, it may be the perfect time to start comparing car insurance quotes.
- You Graduated with a Bachelor’s, Master’s, or PhD Degree
Many car insurance companies assume that if you have a high level of education, you will have less accidents or are less likely to make a claim. Typically, the higher the education, the lower the rate you will have to pay. Many car insurance companies also reward active students for good grades by providing extra discounts on their premium. Currently enrolled in school? Check out these car insurance quotes for college students.
- You’re Older Than When You First Took Out the Policy
When most drivers first take out their auto insurance policy, they are teenagers or young adults. If a substantial amount of time has passed since you first took out your policy, such as from 17 to over 25 years old, you will most likely qualify for a lower premium. Car insurance companies provide lower premiums as you age, under the assumption that older drivers have more experience and are less likely to file a claim. Similarly, senior drivers typically start to see an increase in their rates as they age. Due to health issues, its assumed that elderly drivers will be more likely to file a claim. Check out this chart on Car Insurance Rates by Age and Gender to see where you compare.
- You Moved to a Safer Neighborhood
Another factor that can affect your car insurance rate is where you live. Car insurance companies evaluate traffic patterns, crime rates, and where you park your car (on-street vs off-street parking) when determining premium rates. If you live in a neighborhood where your car is parked on the street, there’s a high-crime rate, or tons of traffic, your premium will most likely be higher than others. If you have moved to a safer neighborhood lately, you may want to shop around for car insurance quotes to see if your rate will be lower.
- You Became a Homeowner
Just like married people tend to pay less in car insurance than single people, so do homeowners vs renters. Homeowners are looked at as responsible, older, and wiser with less of a chance of filing a claim. Insurance companies also target homeowners with lower rates or bundle deals to try and get them to stay with the same company for their homeowner’s insurance as well.
- You Traded Your Mustang for A Minivan
Your insurance premium will vary depending on the type of car that you drive. A safer and more sensible car lowers your risk profile as a driver, which is why car insurance companies often offer lower premiums for the safer makes and models. If you are thinking about making the switch to a safer car, here are 5 Tips for Choosing a Cheaper Car to Insure.
Additional Ways to Lower Your Premium:
- Installing a dash cam
- Taking a defensive driving course
- Avoiding traffic violations
- Maintain a good credit score
- Regularly comparing car insurance quotes
If you have made any of these changes recently and haven’t reached out to your auto insurance company, now may be the time. See what your current company will offer you based on what has changed in your situation, and if you are not pleased, you can keep shopping around for additional car insurance quotes with other companies. These 4 tips for getting car insurance quotes online should help you with the comparing process.