Switching car insurance: how to get pricing, savings this year

Anyone who owns a car knows that budgeting for monthly insurance can be expensive if you don’t have the best driving record (click here for tips on how to budget for insurance!) … but believe it or not, it doesn’t have to be.

Did you know that the average cost of car insurance is $1,426 per year (or $118.63 per month)? Even though auto insurance costs vary widely based on individual rating factors, TheZebra.com created an “average” user profile and gathered rates from major insurers to develop these figures, finding out that there is even a difference on pricing between males and females! Here are a few ways in which you can save some money on insurance this year.

How do car insurance quotes work?

According to TheZebra.com, a comprehensive comparison website for car insurance quotes, car insurance is designed to be the opposite of average. It’s designed to mirror you and the risk you will represent to an insurer. While car insurance quote pricing will vary from person to person, it will also vary by car insurance company. Between the cheapest company (Nationwide — $677) and the most expensive (Allstate — $855), there is a $178 gap in average rates.

The main things that affect your insurance rate are:

• Geographical location
• Age
• Gender
• Marital status
• Years of driving experience
• Driving record
• Claims history
• Credit history
• Previous insurance coverage
• Vehicle type
• Vehicle use
• Miles driven annually
• Coverages and deductibles

How do I get a quote?

The world wide web is a great way to get a price point when you’re shopping around for insurance. However, remember that many times online quotes are standardized and are not able to provide all the discounts that an insurance agent would.

Once you’ve done your due diligence and have narrowed it down to the top five insurance companies you would like to do business with, pick up the phone and make sure you answer all their questions truthfully in hopes to get a better deal… every dollar counts!

Take a look at this article on best and worst sites to compare insurance quotes.

What brings my car insurance down?

The Insurance Information Institute shares that a few things that can bring the cost of your insurance down are:

• Getting married
• Turning twenty-five
• Adding renters insurance
• Adding home insurance
• Higher deductibles
• Reduced coverage on older cars
• Maintaining a good credit record
• Group insurance
• Being a long-time customer

Other discounts often apply depending on the company you have insurance with. For students, for instance, good grades are often a good way to keep your insurance low!

How do I know if I’m paying too much?

As stated above, you can take advantage of an online tool that will give you a price point on what you could be paying with a different company. To be completely sure, however, consider calling an agent that will be able to give you more accurate pricing.

Knowledge is power, so make sure you are doing as much research as you can before deciding whether switching insurance companies is the right move for you.

What if I don’t want to switch companies?

The good news about car insurance is that you don’t necessarily have to switch companies in order to save money. Much like everything else money related, we always recommend calling a professional who will help you evaluate whether you’re overpaying and how you can be saving. If you want to make this your year, grab your phone and call your insurance agent! Chances are, they’ll try their best to keep you as their customer.

Perks, perks, perks

Free movie tickets? Shopping discounts? Gift cards? Yes, please! Insurance companies today are offering all kinds of perks to those who sign up with them or even maintain a policy for a certain amount of time. Make sure to include in your search information about rewards and how different companies will take care of you as a customer.

Want to learn more about car insurance and how to take care of your finances? Make sure to follow the Lending Point blog!

Pro Tip: Don’t miss our wheels on a budget article on why you can’t beat a beater!