Mammoth AwardsAs much as a pain as it may be to toss your hard-earned cash towards car insurance every month, it’s a necessity.
While you can’t legally avoid paying car insurance, there are ways to lower your premium so it makes less of a dent in your budget. Some are linked to the type of car you own, while others take some more personal factors into account.
Here are some factors that go into calculating how much you pay, plus how you can lower it:
1. Your credit score
Want a good reason to make payments on time so you can enjoy a higher credit score? Doing so can lower your car insurance premium.
2. The size of your car
The bigger the car, the lower your premium can be. This is because many larger cars are safer in accidents than their smaller counterparts.
Keep this in mind when car shopping. You may want to go bigger next time.
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While all cars are not created equal when it comes to safety ratings, pure physics come into play here. Even a smaller car with a high safety rating may cost more to insure than a bigger one with a lower score.
Don’t think that a bigger engine makes a car “larger,” either. In fact, the bigger the engine and the smaller the car, the more you’ll pay. That’s why some sports cars are so expensive in the insurance department.
3. The age of your car
Newer cars are less likely to be “totaled” in an accident. Older cars, however, may cost more to repair than they’re worth, which leads to more frequent totaling.
What does this translate to? The newer the car, the higher its collision coverage rates, and the higher the premium.
If you have an old car that isn’t worth much, you may want to get rid of your collision coverage and put it towards a replacement instead.
4. Your car’s safety rating
Yes, bigger cars are often considered safer in accidents, which can lead to lower premiums than smaller cars. When comparing vehicles of the same size, however, their safety ratings can make a difference in insurance premiums.
Safer cars are more likely to protect the driver and passengers in an accident, resulting in lower medical bills. For this reason, cars with high safety ratings can have lower premiums.
What can increase a car’s safety rating? Features like airbags, traction control, automatic seat belts, and the like.
5. How attractive your car is to thieves
If your car is on the most stolen list, that will increase the premium. You can combat this by installing anti-theft features like a car alarm or a GPS tracking device.
6. How often you drive your car
The more your car is on the road, the higher its risk of getting into an accident. When getting an auto insurance quote, be sure to know how much you really drive.
Don’t overestimate your miles driven. Doing so can raise your rate.
Lastly, if you have a garage, be sure to mention it. Keeping a car safely in a garage limits potential damage and can decrease your premium too.
