Most people already know that insurance costs vary with the driver, mainly depending on factors like their state of residence, the insurance company of choice, and the type of coverage they choose. However, when it comes to saving money on car insurance, it helps to know what your average driver will expect to pay.
The average person will pay around $1100 for car insurance, according to the National Association of Insurance Commissions. However, car insurance premiums are on the rise, going up by around 7%. In 2020 the insurance cost for new vehicles was slightly over $1200 annually, which works out to around $100 a month.
So, how can you decrease the cost of car insurance? In this article, we’ll look at a few ways to save money.
Get A Multi-Car Discount
If you get a quote from an auto insurer for a single vehicle, you will get a higher quote per vehicle as opposed to if you needed several drivers or maybe several vehicles insured. Bulk discount rates help insurance companies attract more business. That’s why some auto insurance companies will cut you a deal.
An insurance agent can check to see if you qualify. Usually, if you want multiple drivers to be insured, they all need to be at the same residence and be related by marriage or blood. Though two unrelated people can also get a discount, but only if they jointly own that vehicle.
Teen Drivers Pay More
If you want to insure a teen driver, expect to pay more. If your child has a B average grade in school or is in the top 20% of their class, you can get what’s referred to as a good student discount, which lasts till the person turns 25. The amount you can save ranges from 1% all the way up to 39% but be ready to show proof of being an excellent student to the insurance agent.
Bundle The Policy
You can also get a much better deal if you bundle your home insurance, life insurance, and vehicle insurance into one package. That way, you can save on all three types of policies with a bulk discount. Though how much of a discount you get will vary depending on the insurer you choose.
Work Hard To Be A Safe Driver
If you are a safe driver, it is almost a given that you will pay less for car insurance as opposed to if you are easily distracted behind the wheel. The better your driving history, the more money you will save. Safe driver discounts can range from 10% up to 23%.
Learn Defensive Driving
Some insurance companies tend to provide a discount to people who have gone through an approved defensive driving course. Defensive driving certificate holders can reduce the number of points currently on their licenses and are less likely to get into accidents. However, make sure to consult with your insurance agent before signing up for a class.
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