You may qualify for auto insurance discounts if you:
- Have a car with ABS brakes
- Have airbags
- Have an anti-theft system
- Drive low mileage
- Have daytime running lights
- Maintain good credit
- No accidents in the last 3 years
- No tickets in the last 3 years
- Have a driver training course
- Are a senior citizen
- Have an AAA or CAA membership
- Are a student and have good grades
- Plus most companies give discounts based on:
- Being a long-term policyholder
- Having multiple cars on your policy
Auto Cost Factors
The cost of auto insurance varies greatly with a number of factors. All of these factors must be considered; both for yourself and any other drivers who will be insured on a single auto insurance policy.
- The Location Where You Live:
Normally, you will pay more for auto insurance in urban areas and less for auto insurance in rural areas. However, an auto insurance company will take into account local statistics on accidents, thefts and lawsuit’s and the local costs of repair and medical treatment. You may want to consider this aspect when moving to a new location. High auto insurance premiums add up over time
- Your Age:
Generally speaking, if you are younger, you will pay more for auto insurance. Insurance companies play a ‘numbers game’ which work against younger drivers. Statistically, more mature drivers have fewer accidents than less experienced drivers. Younger drivers can mitigate this by being insured as an ‘occasional’ driver on their parent’s auto insurance policy.
- Your Driving Record:
The better your driving record is the less you should be paying for auto insurance. A ‘clean’ driving record (no accidents or claims) will get you the best rate. Keep in mind that for an auto insurance company, being insured and having no claims establishes you as low risk.
If you are a young driver you should begin to establish a ‘clean’ driving record as soon as possible. Getting added to a parent’s auto insurance as an ‘occasional’ driver (or with various restrictions) ensures that a young driver’s auto insurance will drop in price as quickly as possible.
- Your Gender:
Sorry men – the women win on this one. Unless your jurisdiction has legislation prohibiting discrimination by auto insurance companies on the basis of gender women will usually pay less. Unfortunately, the auto insurance companies have figured out that younger male drivers have a higher risk of ‘at fault’ accidents.
- The Model and Make of Car:
The flashiest sports car may not be the best choice if you want to pay low auto insurance rates. All insurers will consider the cost of the car, the cost of repairs, and the overall safety record of the car. Expect to pay more for faster, more expensive or ‘desirable’ models of cars.
- Theft Rate of That Type of Car:
Keep in mind that some models are more prone to being stolen, even if they are not what we think as ‘flashy’. For instance, at one point Honda had a model which was frequently stolen and in high demand on the ‘black’ market. Toyota has had the same problem. As a result, it pays to check out the theft rates of any vehicle you are interested in. This can impact your auto insurance costs more than you’d think.
If you are willing to put in a good security system you may be able to reduce or eliminate any extra premium you would pay for a theft-prone car.
The deductible is the amount you are willing to pay out of your own pocket in case of an accident or claim. Overall, the higher the deductible the lower the cost of your auto insurance policy, you will have to weigh whether a lower cost auto insurance policy is better or more coverage is better.
In general, if you have a good driving record to consider a higher deductible. This is you gambling on you. Just be sure that you can afford that $500 or $1000 up-front if you are in an accident.
- Type and Level of Coverage Chosen:
The more types of auto insurance coverage and the higher the level of auto insurance coverage the more you should expect to pay. While you may qualify for discounts it pays upfront to ensure you are not carrying auto insurance that you don’t really need. For instance, if you have an automobile club membership you don’t need that extra coverage for towing – it just makes sense.