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Saving on Auto Insurance: How You Can Lower Your Rates

November 8, 2011


Auto insurance is a major expense for most people, and the cost of this coverage is on the rise. You can’t drive without insurance, but you can find ways to save and reduce your premiums. No matter your age or level of experience, there are simple methods of getting a more affordable auto insurance rate right now. For each age group, the best ways to save on auto insurance are a little different.

New Drivers

New drivers are among the most expensive to insure for a few simple reasons: they are inexperienced and they are statistically more likely to be involved in an accident. While you will pay more for a policy on a young driver than you will on a more experienced driver, there are ways to avoid sticker shock.

• Good Student Discounts. Many insurance companies offer a discount for students who carry a minimum required grade average. Young drivers who are also students can save by keeping good grades.

• Driver Education Courses. Not only do they make for safer drivers, driver education courses may also help you to get lower rates.

• Choose your Car Carefully. A young driver with a sports car is likely to receive higher rates. Consider an older, reliable and economical car – as it may help drive down some of the cost of covering an inexperienced driver.

Drivers Over 25

Once you are no longer paying the rates of a new and inexperienced driver, you will see some improvement in your yearly premium. Still, there are plenty of ways for drivers who are over 25 to find ways to save.

• Shop Around. Once you have several years of driving behind you and have a good driving record, you should take the time to shop around for a better car insurance quote. Every insurance company rates things a little differently, and your current company may not have the best rates for your situation.

• Ask About Discounts. Make sure you are getting all of the discounts available to you from your insurance company. Some of the discounts available may include, installing a security system on your car, driving an eco-friendly car, or for various safety features such as winter tires.

• Combine Policies with your Spouse. Many people at this age are getting married but may keep insurance separate. Most companies offer a discount for having more than one car insured with them – so consider combining your insurance!

Experienced Drivers

There are benefits that come with time and one of them is qualifying for better insurance rates. There are plenty of programs today that reward experienced drivers for their good records with better rates. Look into some of these ways to save:

• Consider your Deductibles. If you are financially stable and have a good driving record, it might be a good choice to carry higher deductibles on your policy. You will pay less in premiums over time. Of course, you will have to pay a larger amount out of pocket in the event of a claim, but if the odds of that happening are low, your overall savings will make up for it.

• Combine your Policies. If your home insurance and your auto insurance are not currently with the same company, you could be saving a lot of money by combining them. Most companies offer multi-policy discounts, so have each company offer quotes for all of your policies to see how much you could save.

• Stick Around. This may not be the best time to switch companies unless the savings are significant. Many insurance companies offer great longevity discounts for staying with them, so make sure you are ready to give that up before you switch.

Drivers Over 55 Years

Mature drivers over 55 years old can qualify for some of the best rates on the road. Especially as you head towards retirement and the possibility of a fixed income, it is important to make sure your monthly expenses are affordable – including car insurance.

• Companies Catering to Mature Drivers. Today there are companies across Canada who work specifically to get the best rates for drivers over 55. It’s a good idea to take the time to get a few quotes and see how much you can lower your rates.

• Retirement Benefits. When you are no longer commuting to work every day you can qualify for a lower rate. Make sure your insurance company knows you have retired and changes the commuting status of your car to pleasure use so you can pay less.

Of course, no matter what your age it is always a good idea to shop around for a better rate. Comparing insurance quotes from various companies is the number one way to find lower premiums and pay a lot less for car insurance. Take the time to obtain quotes regularly so that you know you are always getting the best deal.