If you want to lower your car insurance rates, there are a few things you can do. First, practice safe driving behaviors and stay away from any problems on the road. This will help you avoid filing any serious claims with your insurer, which can help reduce your rates over time. Some insurers now use telematics technology to monitor drivers' speed, acceleration, braking and other factors and reward those who practice safe driving with lower rates.
It's also important to be aware of the insurance information in your zip code. Unfair as it may seem, if your city has a high rate of theft, accidents, and weather-related claims, it can lead to an increase in the price of car insurance, even if you have a perfect driving record. Having a good credit history can also save you money on car insurance. Details about your demographics and driving history can affect the cost of your policy, so if you have an irregular history or are very young, you should expect to pay more in premiums.
Additionally, insuring a leased or financed car can cost more than coverage for one you own directly, as the lender may require you to buy more types of coverage than you would have chosen. Shopping around for car insurance quotes every year is the best way to make sure you pay as little as possible. Your driving history, credit score, location, age, and the car you drive are all important factors that set your car insurance rates. Insurance companies will also analyze historical averages of accidents based on your demographics and factor them into your premium.
Adding extra coverage such as new car replacement coverage may increase the price of your policy but could be worth it in the long run. Drivers in their 20s are usually charged higher rates due to their age and lack of experience. Your insurance company will also want to know where you live and work and how far you drive. If you switch from a non-standard insurer that primarily covers high-risk drivers, you may pay more than someone who changes from a conventional insurance company. Finally, taking a defensive driving course can help neutralize any concerns your insurance company may have about your driving record.
If you're considering moving, it's worth getting some examples of insurance quotes to understand how rates will vary in your new home.