Buying a car is already very expensive and draining for your pocket. But when you add car insurance into the mix, you will pay even more. But how much is car insurance? Many people dread the question because premiums can eat a big part of their monthly budget.
But car insurance matters, and it’s not something you can do away with. Being remiss on your car insurance payments means you get no coverage in case of an accident. The potential risks from car damage to medical injuries are not worth the price of being remiss.
For this reason, car insurance shouldn’t be optional but mandatory. Fortunately, there are many ways to cut costs without sacrificing your insurance coverage. Here are six clever tips to help you calculate your car insurance payment in 2022:
Tip 1: Assess the Type of Car You Drive
Whether your car is fresh off the dealership, newly acquired from a secondhand shop, or leased, car insurance companies factor in many things for computation. The primary considerations of your car insurance premiums usually depend on the type of car you drive, specifically:
- Make
- Model
- Year
In general, some cars are just more expensive than others. For example, if your vehicle is difficult to steal and not so costly to repair, you pay less for premiums because it’s not risky. If you want to enjoy lower premiums, opt for a vehicle with a lower-cost insurance rating. Typically, those the IIHS (Insurance Institute for Highway Safety) rates as the safest belong to this list. Make it a rule of thumb to provide your car vehicle’s identification number to lower premiums to your insurer.
Tip 2: Consider Your Driving Record
If you’re wondering how much car insurance is, it also hinges on your driving record. If you have more driving violations, it can add to your insurance premium. These include the following:
- License suspensions
- Parking tickets
- Driving convictions
- Accidents involved in
Bear in mind that it can take several years for your driving records to be clean. Make it a point to build up a conviction-free and accident-free driving record to lower your insurance payments.
Tip 3: Evaluate Who Gets on Behind the Wheel
The people driving your vehicle will affect insurance ratings. You have to give your insurer a complete list of people who usually drive your car. If you have teenagers who are new to driving, this could mean you will pay higher premiums. Typically, mature and experienced drivers tend to have fewer accidents, while those who recently got their licenses could be riskier.
Moreover, insurers favor women drivers because they statistically have fewer accidents, less severe accidents, and fewer DUIs than male drivers. If you want to lower payments, take out high-risk drivers from your insurance policy.
Tip 4: Factor in Frequency of Vehicle Use
Do you commute long distances daily? In part, the price of your insurance premiums depends on how much you use your vehicle. If you use your automobile more for pleasure, you could pay less. Rule of thumb: The more you drive and the more miles you traverse, the greater the likelihood of an accident. As a result, you may be expected to pay more for your car insurance.
If you want to lower your monthly insurance payments, adjust how often you use your car. You could take the bike on certain errands. Alternatively, you can allot one day in a week for public transport to keep your mileage count low.
Tip 5: Take Location Into Account
Your address could affect your insurance payments. Urban areas with higher density prove riskier with more accidents and thefts. Hence, if you live in a city, you could have higher costs.
If you’re determined to keep car insurance expenses to a minimum, consider the following:
- Increase your share of the cost claim or deductibles
- Take out collision coverage for an old vehicle
- Ask for bundled packages for your home insurance and vehicles
- Install an approved car security system to deter thieves
Tip 6: Credit Score Comes Into Play
Your insurance company doesn’t only look at how safe your vehicle is or your driving skills. They also assess how competent you are as an individual. Most of the time, they also delve into your credit score when making calculations for your insurance costs. Research indicates that drivers with bad credit tend to file more claims than drivers with good credit standing. To make things worse, people with bad credit file more expensive suits.
Insurers look at the history of coverage. If you lack continuous insurance coverage, you pose a higher risk. This could mean that you were licensed and driving uninsured. Therefore, avoid this situation by securing coverage. Rates vary depending on the insurance company. While many factors could influence your rates, you can still work with a reputable insurance provider to develop a monthly plan you can afford.
