Car insurance premiums grow more expensive every year, due to a variety of factors. Inflation, a rise in auto accidents on the roads, and a growth in population can all cause car insurance premiums to rise.
Typically, there are certain things you can count on to raise your car insurance. Residents in more expensive zip codes tend to pay more for car insurance. New drivers and teenage drivers especially will pay more than older drivers – one in five 16-year-old drivers gets an accident on their driving record in their first year behind the wheel, so they are costlier to insure. However, after the age of 65, rates rise again – older drivers are more likely to have accidents than younger adults, and they are also more likely to be seriously injured in the event of an accident.
Coverage selections also impact your premium. While each state has a minimum coverage requirement for drivers, if you opt for fuller coverage or perks like more money for a rental car in the event your car is in the shop, your rates will also rise. It’s important to get the most comprehensive insurance plan you can afford, so the best thing you can do to keep your rates low is be a conscientious, defensive driver on the road.
Your personal driving history will also factor into your rates. Drivers with few or no accidents and no moving violations will pay the best possible rates for auto insurance. Auto insurance isn’t an area that you want to skimp on, so being able to get the insurance plan with the most coverage will bring you peace of mind. Hopefully you will never experience anything worse than a fender bender, but even a minor accident while uninsured can end up costing you more in the end than a strong insurance plan. (It’s also illegal to drive without insurance in 48 states.)
Fortunately, there are several ways to lower your car insurance, no matter how old you are or how many years driving you have under your seatbelt. For teenagers and college students, many insurers offer discounts for being a good student, volunteering in your community, or participating in organizations, like Eagle Scouts and religious affiliations.
The longer you go as a good driver without any accidents or moving violations, the lower your rates will be. In the event you do get a minor ticket, you will often be able to offset any potential increase to your insurance by participating in court-approved defensive driving courses. These can be very affordable and will help your driving, too.
Car insurance is not all about you, though! The make, model, trim, and year of your car will also influence your rates. Older cars that have depreciated in value will cost less to insure, while a newer car will be more expensive. Similarly, a fancy luxury vehicle with all the bells and whistles, made with high horsepower engines, will cost more to insure than a standard model with a solid safety rating.
The safety and health of your car also factor into your car insurance. Parking in a locked garage and equipping your car with safety and security features will protect your asset and potentially keep your rates low. Making sure you keep up the regularly scheduled maintenance of your car keeps your car in good health, reducing your risk of a malfunction that results in an accident that could harm yourself or others.
One of the benefits to installing LoJack on your new car is that it can reduce your comprehensive insurance by 5% – 25%, depending on your location. Car insurance costs the average American $1,674 a year – with LoJack, you could be potentially saving over $400 on your insurance every year, while maintaining full comprehensive coverage.
Driving is a necessary part of most of our daily life, but the associated costs can sometimes add up. Don’t let insurance stop you from buying a new car — there are ways to reduce your premiums and stay safe on the road 24/7/365.
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