Car insurance companies determine your policy rates by the amount of risk they believe you and your vehicle to be. Naturally, they find people under the age of 25 to be the highest risk, especially single males. Here’s a few tips to help you get some discounts.
1. Group up with your parents. Many car insurance companies offer a special discount for having multiple drivers insured with them. There’s also a good chance for a multi-car discount. Also, if your parents have their home insured with the same company, they’re probably receiving a home + car discount. Often times, partnering up with your parents can help lower the premiums dramatically.
2. Get good grades. This is usually a pretty big discount. Insurance companies view students with higher grades to be less risky on the roads. Therefore, the premiums (monthly payments) are much lower.
3. Get a sedan or family car. In general, the more sporty the car is, the higher the rate. Especially for people under 25. The combination of a sports car or muscle car and a person under the age of 25 will always cause the rates to skyrocket. Stick with a car that’s classified as a family car or economy car. Even a van would have lower insurance rates than a sports car.
4. Take a certified defensive driver course. Often times, taking a certified course for defensive driving will help lower premiums. Check with your insurance company prior to signing up for any classes to make sure it will actually lower your rates.
5. Ask for a higher deductible. With all types of insurance, a higher deductible means lower rates. Be careful here and make sure you weigh your options completely. You don’t want to be taking on an extra $1000 in deductible if it’s only going to save you a few dollars a month in premiums. Be smart, think about it.
6. Shop around. This is important. If one company offers you one thing, take that offer to another company and see if they can beat it. Keep that up until you’ve found the best deal.