Julia Anderson
Chances are, you are overpaying for car insurance if you have not made the following moves to minimize your premiums.
Putting Children On Your Policy
Car insurance premiums can pack quite a punch for younger drivers, as their inexperience behind the wheel makes them riskier in the eyes of companies. You can help your kids (or yourself) save significant cash by putting them on your policy instead of on their own. Why? Because you, as the parent, will be assuming the risk. As for how much you can save by making this move, some put the savings at a whopping 62 percent.
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It’s worth noting that putting your kids on your policy will likely raise your rates. A way to minimize this increase is to ensure your children get good grades. Even a B average could lead to lower car insurance for young drivers, as statistics show that solid students tend to be at fault in fewer accidents.
Seek Senior Discounts
If you are a senior and have not shopped around for age-related car insurance discounts, now is the time to do so. Some companies like Geico will offer discounts for safe drivers over 50. Shop around, and you could find such a discount to keep your premiums low. Don’t forget to mention your mileage, either. Many seniors tend to drive less, and this can lead to lower car insurance payments.
Minimize Your Red Flags
What are two events that can make your car insurance premiums skyrocket? Getting into an accident or getting a ticket. Minimize these events, and you can minimize your car insurance payment.
Although it can be challenging to completely avoid accidents with all the craziness on the roads, keeping tickets at bay is easier. But if you do get a ticket, there’s a way to keep it off your record to prevent a car insurance hike: Go to traffic school.
Check Your Credit Score
You can get a free annual credit report to see where you stand. What does this have to do with car insurance? Some companies have found a link between car insurance claims and credit scores. In other words, the higher your credit score, the less you could pay for car insurance.
Make car, rent, and bill payments on time, and you won’t have to worry as much about skyrocketing car insurance.
Pay Per Mile
Have you stopped driving as much due to age, the pandemic, or some other reason? Then you may want to consider a usage-based insurance policy that charges a base rate and a tiny fee per mile driven. Is this type of policy for everyone? No, as the miles you can drive are typically very low, but it is worth looking into if you barely drive.
Allow Tracking
Are you a great driver who uses your signal every time, brakes softly, and lays off the accelerator? Then you may want to allow your insurance company to track your driving habits with a device that plugs into a port beneath your dashboard. While some may find this intrusive, safe drivers could save significant cash by letting their insurers see just how responsible (and riskless) they are.
