Insurance is a huge factor when buying cars, especially if you really want to save some cost. So here are some things you should probably be aware of when shopping your insurance!
- Vehicle make and type MATTERS: The cost of the vehicle itself, the number of that particular vehicle stolen, the type of the vehicle (convertible? Sedan? SUV?), and the mileage of the vehicle ALL MATTERS! However, exactly what car would give you the lowest insurance rate is not to be known, since the insurance companies do need to make profit.That being said, you CAN find past data regarding that matter; you can simply go on Insurance Institute for Highway Safety to estimate your insurance rate by comparing past data.
- As ugly as it sounds, your occupation DOES affect your insurance rate. Yes, unfortunately it does; occupations stereotyped “safer,” such as engineers and teachers, tend to be able to get lower insurance rates.
- Your CREDIT SCORE affects your insurance rate: This is a lot more widely known than the previous two points; research has shown that there’s a link between your credit score and the likelihood that you will file a claim. Plus, car insurers know that if you pay your bills on time and you’ve had the same credit accounts for a long time, then you’re generally more stable and far less likely to pay late or open & close accounts a lot.
- You WILL get lower rates if you’re somehow related to AAA or other professional auto-related organizations: So yea, make sure you check every detail of your own background before you start looking for insurance IF you really want a lower rate.
- If you’re a STUDENT, higher GPA can get you discounts with some insurance companies: Sounds stereotypical but true according to research; assumption is that if you’re a good student at school, chances are you’ll be more careful on the road and be able to make better driving decisions.
- If someone borrows your car and gets into an accident, you’ll have to file claim: That is, you’ll be responsible for all the damage, and chances are your rates will increase as a result. So, please think twice when someone asks to borrow your car.
- Age and driving experience (i.e. how long) also affects your rate: Younger people and elderly people take up the majority of auto accidents; therefore their insurance rates would be higher.
- Color of the vehicle does NOT affect the insurance rate: We’ve all heard urban legends regarding this, but it is not true, so feel free to buy a uniquely colored car!
Now that you’ve read all this, there’s a final thing we would like to remind you, that is, when setting up an insurance plan, please take time to make sure the information filled in is exactly what it should be, so that you don’t pay more than you should! Have a nice drive!