What are some of the key things an insured can do to reduce their auto insurance costs?
Most of us have a general idea of the kinds of factors that increase insurance rates on our cars.
We know that being young and male can increase your car insurance rates, and we know where we live can make an impact, whether it’s in a neighborhood famous for theft or just in a big city with lots of traffic and reduced parking. We also know that our driving record influences the type of money we must pay for auto insurance.
If the above factors apply to you, you probably know that these factors often cannot be changed or reversed, so you must find other ways to lower your premiums.
For those of you to whom these factors do not apply, you are probably still interested in lowering the cost of your insurance because those who do not like a little extra money. If it doesn’t, write us a check.
Now the first important point is: you don’t need to buy a boring or horrible car to get lower insurance.
There are many places that sell great cars that won’t cost you an arm or a leg in insurance. Once you understand that you are not sacrificing great cars for insurance, you are ready to learn.
When you imagine a car with super low insurance rates, you are probably imagining the sweetly named “nana car” (no offense, Nanas): the very small, vintage, and deviceless car that is generally inexpensive but not always exciting. If this is what you are imagining, you will be surprised to discover that this is not always the case.
Factors to consider when choosing low-rate auto insurance
1. Safety classification
A car with a good safety rating will, of course, have lower rates, but what makes a car safe? A car with all the gadgets, of course! A car with traction control, airbags, automatic seat belts, lane sensors, and automatic windshield wipers – everything that makes driving safer and easier.
In this case, the small car without gadgets does not win the insurance game. Therefore, if you have not yet purchased a car or are considering replacing it, it is important that you are fully aware of the type of car you should purchase so that the cost of insuring it does not eat into your pocket.
Cars that are more likely to be stolen always have a higher insurance cost.
2. Vehicle size
Larger cars have a greater ability to withstand accidents, so if you buy a slightly larger car, your insurance rates will drop.
However, engine size is taken into account, so if your car is a huge and extremely powerful V8, you won’t save on insurance. If you had to choose between a small car and a large car with the same safety rating, the large car would be cheaper to insure.
If you are among the newbies who still want to know how the size of a vehicle can affect the insurance rate of your car, I advise you to check with an independent insurance agent in your neighborhood for a detailed explanation; graphic and documentary evidence.
3. Probability of theft
Unfortunately, some cars are more attractive to thieves than others, which can be difficult to predict, but again, gadgets will help.
If you have good locks and alarm systems, your insurance will be reduced. You may think that the “Nana car” is the least likely to be stolen, but one of New Zealand’s most stolen cars this year was the Mazda Demio.
I had a Mazda Demio. My own mother said to me when buying it: “It’s a bit of a Nana car, isn’t it?” Thanks Mom. Because these good locks and alarm systems reduce your car’s theft trend, they also influence your car’s insurance rates by lowering it.
You can protect your car against theft using some of the most effective automatic anti-theft devices in the world.
4. Age of the vehicle
Here’s a great example of not having to sacrifice a great car for the sake of lower insurance. In this case, it’s the clean, fresh cars with the “new car smell” that will have the lowest insurance rates.
A “younger” car is less likely to crash in a collision, and therefore will have less collision repair costs.
Taking all these factors into account, you can see that it is possible to have a great car while making smart economic decisions and reducing insurance rates. Choose a younger, cooler car with plenty of room and some nice gadgets to go with it. You will enjoy both a great trip and great insurance rates.
Other common factors influencing auto insurance rates
- Driving Record (See another post on how to get the best deal, regardless of your driving record.)
- Age of the person who is going to drive the car. If the car is to be driven by a younger person, the insurance rate will be higher.
- The gender of the person driving the car also influences the rate.
- The city where the car will be driven also affects car insurance rates. Places like New York, Texas, Florida, etc. with higher population density they always have inflated rates.
- Credit history
- Claims history
- Your previous insurance coverage also plays a key role.
Considering these factors alone, they are not the only ways to save money on your car insurance. You will also have to explore your city to find an insurance company with cheaper quotes.