Save Money on Car Insurance (Part I)
This is a three part
series on some of the ways you can lower
your car insurance premiums to a more
manageable level.
The type of car that you drive has a lot
to do with your car insurance. People
often think that if they drive a big tank
as opposed to a tiny little car that they
will pay less in car insurance. However,
the insurance companies don’t look at it
that way. They look at how much damage the
car will get if involved in a car
accident, and make their determination on
how much it will cost to get it fixed.
For example, the GMC Yukon is one of the
cheapest because if it is in an accident,
the other car will get the brunt of the
damage. On the other end, you have the Kia
Spectra which is one of the worst cars to
be in an accident in because of how much
it will cost to fix it. Look at how sturdy
your car is and that will give you an
idea. You can also ask at the dealership,
for they can tell you what the average
rate is for the car before you buy it.
This way if it is extreme, you have the
opportunity to change your mind and look
at another car.
Another thing to look at is how good of a
driver you are – and how you might improve
your skills. If you take a defensive
driving course you could save 10% a year
off of your insurance, just from paying
$50 for seven hours and learning how to be
a better driver. If you have good credit,
you will find that your rates are lower as
well – for some reason they think that if
you pay your bills you are a good driver.
So keep your credit score high as they
check it each time you are up for renewal.
Age and sex affect your rates, which
pretty much everyone knows. Men pay more
than women, old pay more than young.
Although, once you hit 70 – your rates
start going up again because you are
considered a risk once more. If your child
is driving, have them get good grades.
They can save up to 10% just by doing well
in school. You will have to provide your
insurance company with a copy of your
child’s report card, but it is worth the
discount.
Next time we will discuss combined
policies, where you work having an affect,
deductible pricing, and driving distances.
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