We learned early on that comparing yourself to others is never a good deal, right? But when it comes to economics, comparisons can help you open your eyes and find new solutions.
my car insurance more expensive than my friend’s
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Have you ever talked to a friend and found out that their car insurance cost a lot less than yours? Did that make you frustrated and angry with the policy you purchased?
Well, that can happen and it’s very annoying, in fact, but before you go around cursing your insurance company and feeling like the most wronged of creatures, it’s important to be aware of the criteria adopted in calculating your rates and thus, find out what you can do to lower your own insurance next time or in a review.
What determines the price of my auto insurance?
This is one of the key points to start thinking about a way to save on insurance. The amount you will pay for your car insurance is directly impacted by a number of different factors, from the type of coverage you choose to your driving background.
Although not all insurers use the exact same parameters, some are unanimous and others are very common, so we have made a list of the most common factors to consider:
- Your driving history
- car use
- Where do you walk
- Your age
- your gender
- the car you drive
Your driving history
The better your track record, the lower the prize. If you’ve had accidents or serious traffic violations, you’re likely to pay more than an unregistered driver. But not only that, a bad history can leave you without coverage for good, as insurers may refuse to cover such a driver.
If you have just arrived in the US and your Drivers License is new, your premium will likely be high due to lack of history. But this can be reduced each year if you don’t have serious incidents and create a good record.
car use
The more miles you drive, the greater the chance of accidents, law of probability. That is, if you use your car to go to work every day or to travel long distances frequently, you will pay extra for it.
If you only drive occasionally, for weekend outings, the so-called “use for pleasure”, you will pay less. But remember lying in such a case can let you down when filing a claim.
Insurers have several ways to verify your declaration of use and if any type of fraud is identified, you may have your insurance canceled or your renewal barred.
Where do you work
Location! Location! Location!
Where you live, where you work, where you usually park, directly determines the value of your insurance.
Due to higher rates of vandalism, theft and accidents, urban drivers pay a higher price on car insurance than those who live in small towns or rural areas, for example.
Other factors that affect the price of the premium that may vary from one area or state to another are: cost and frequency of litigation, medical care costs, auto repair cost, recurrence of auto insurance fraud, and weather trends.
Your age
Statistically, more experienced drivers have fewer accidents than younger drivers, especially teenagers.
Insurers generally charge more if teenagers or young people under the age of 25 drive their car.
your gender
According to statistics, women tend to be involved in fewer accidents, cause fewer accidents by driving under the influence of some type of narcotic and, most importantly, have fewer serious accidents than men.
So, all things being equal, women tend to pay less for auto insurance than men.
the car you drive
The cost of your car is an important factor in the cost of insurance. Other variables include the likelihood of theft, the cost of repairs, the size of the engine, and the car’s overall safety record.
That’s why we always like to remind you: do the insurance simulation for your dream car before you even buy it. Include the cost in your planning and make sure you can afford adequate insurance for your new asset.
What can I do to decrease this value?
When it comes to buying auto insurance, combining research with planning is always a good way to save. As we have already said, the first tip is to plan the purchase of your car already considering the possible value of the insurance.
However, there are ways to save up to 50% on your monthly installment.
Taking advantage of discounts is one of the best ways to keep your car insurance rates friendly – whether you were born in the United States or not.
Defensive Driving Course
One way to reduce your fees is to take a defensive driving course or a general driver training course.
As a new driver in the country, taking a course will let insurers know that you are a competent, responsible driver and that you will not file tons of claims.
This can help you get up to 30% off your rates!
Passive Restriction Discount
Many insurers offer this deal, which lowers your car insurance rates by up to 40%!
What you need to do is make sure your car is equipped with built-in safety features like automatic seat belts and airbags.
Check with your insurance specialist for features and criteria for them to be validated by your insurer.
multi-car policy
If you already have family in the US and live with them, ask to be added to their policy.
Each insurer has a policy to define which family members can be included in the policy and how this impacts the value of fees. Assuming you have the same primary residence, you can join the policy and get useful savings like discounts for multiple drivers and cars.
Check with your broker!
Track your mileage
If you use public transport frequently and only drive on occasional trips, put yourself as an occasional driver on your policy. That way, you can qualify for low mileage discounts.
Coverage suitable for your location
As we’ve discussed, if you’re in an area with high crime or traffic, you may end up paying more due to the higher risk of theft or damage.
In that case, consider investing in collision or comprehensive coverage to keep your car protected.
multi-car policy
If you already have family in the US and live with them, ask to be added to their policy.
Each insurer has a policy to define which family members can be included in the policy and how this impacts the value of fees. Assuming you have the same primary residence, you can join the policy and get useful savings like discounts for multiple drivers and cars.
Check with your broker!
Track your mileage
If you use public transport frequently and only drive on occasional trips, put yourself as an occasional driver on your policy. That way, you can qualify for low mileage discounts.
Coverage suitable for your location
As we’ve discussed, if you’re in an area with high crime or traffic, you may end up paying more due to the higher risk of theft or damage.
In that case, consider investing in collision or comprehensive coverage to keep your car protected.
security features
Invest in safety features for your vehicle. Installing anti-theft devices, alarms, automatic locks, can increase the insurance company’s confidence and reduce its costs.
But don’t think that any chain wrapped around the steering wheel will give you discounts! Talk to your agent to find out which devices are considered by insurers to ensure your investment pays off.
Be careful when choosing a car
Consider your car choice carefully. Safe family cars are cheaper than fancy convertibles or imposing SUVs.
Be aware of your needs and how they affect your rates. You may find that with convenient public transport options and an easy commute, you don’t even need a car right now.
review your insurance
Reviewing your insurance periodically is always a good idea. We often settle for automatic renewals and don’t even stop to check that all the coverages still make sense.
You may have changed neighborhood, route, routine, work and in these changes, some coverage is no longer necessary, others may become.
Save Tips
In addition to these actions to save on your car insurance, you get even more advantages.
Meet now:
- If you take out home insurance (rental or home ownership), you can save up to 20% on your car insurance installment.
- Simulating cash payment every six months, you can discount another 15% on your monthly installment.
- You can switch to using the app in the car to monitor your driving habits, and save another 10%.
- Planning ahead and taking out the insurance today to become effective in 7 or more days also earns you an average discount of 5%
- You can still save by choosing higher coverage, which affects the value of your installment in an inversely proportional way, which can make a lot of sense at the time of hiring.
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