The Best Kept Secrets in the Car Insurance Industry When it Comes to Saving Money on Your Insurance Premiums
We all tend to put a tremendous amount of faith in those little questionnaires we fill out when it comes to saving money on our car insurance, but are we putting too much faith in them? There are literally hundreds of insurance discounts that you're never going to find on any car insurance company's quote questionnaire. In fact, the first time agent you talk to when you buy your policy may not even know about half of them!
That's why it pays to be in the know before you pick up the phone.
Car insurance companies base your insurance discounts on four basic categories: You, your car, your driving history and your insurance needs.
1) You
Believe it or not, you have NOT been reduced to a nameless, faceless number. Not completely, anyway! Who you are and where you live play a huge role in how much you're going to pay for your car insurance coverage. Teachers and engineers are statistically less likely to be in an an accident, so they get better discounts on their insurance. And car insurance companies love people who drive very little, live in rural areas and don't have to commute to work.
Not to mention you can save big bucks by being over 25. The number of insurance claims filed by drivers over 25 is 60% lower than those that are under 25, making you much cheaper for them to insure.
2) Your Car
The Highway Loss Data Institute keeps a record each year of cars involved in accidents and thefts. These are charted out by make, model and year and provide a very accurate representation of the risk your car represents. If your car is high risk you're going to pay more, if your car is low risk you're going to enjoy better discounts.
And if you're driving a Jag, Mercedes or other luxury car that's going to cost more to replace your premiums are going to be higher by default. There's nothing you can do about that.
3) Types of Car Insurance You Need
Needless to say, you're going to pay more for comprehensive and collision coverage than you would if you only had liability. That's why people with secondhand cars that have a $500 or less resale value don't usually bother with them. It's just not worth it! If you're driving a new car, or one with a lien on it, you're going to want full coverage. A full coverage package usually includes:
Liability
Collision
Comprehensive
Uninsured/Underinsured Motorist
**Pro Tip: Higher Deductibles=Lower Premiums. Use that to your advantage.**
4) Your Driving History
You knew it was coming. Don't act like you didn't! None of the car insurance companies out there are going to willingly issue you a car insurance policy without first checking out your driving record, so the best thing you can do is stay as squeaky clean as possible. Accidents and traffic violations are going to count against you, as well as multiple speeding tickets. Keep your eyes on the road and your foot off the gas pedal and you should have no trouble saving money on your insurance.
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