Car Insurance Hacks That Can Unlock Big Savings

car insurance

Car insurance can be a pain in your budget and it increases each year. Even if they have proven to be absolutely necessary. Indeed, you will only find out how important they are only when you get into a car accident. Yet, how to save money on car insurance is a question that gets the attention of every single driver? Actually, those solutions shouldn’t take into consideration things like credit score or driving history.


What raises and lowers your car insurance?

It is important to be assertive about factors that affect your auto insurance. Typically, factors like your driving habits, demographic factors, and the limits and deductibles play a critical role in evaluating your premium. In addition, other elements to be considered may include your age, your driving record. Moreover, the following elements might result in a higher insurance premium:

  • your history of claim,
  • a poor credit history,
  • and if you include children in your policy

At What age does car insurance go down?

The is a common interrogation, considering the fact that age plays a significant in determining your car insurance premium. Usually, for male drivers, their insurance premiums go down when they reach 25. Commonly, female drivers pay less in car insurance premiums. That is because statistically, female drivers are less involved in car accidents than males.

Finally, statistically, drivers under 25 tend to get involved in more car accidents. Hence, to cover the risk, car insurance companies charge them more in premiums.

Does your car insurance go down after the car is paid off?

Car insurance is completely different from your car price tag. However, you can lower your insurance premium by dropping some coverages that are no longer required. An example of non-required coverage could be collusion and comprehensive coverage. Yet, it depends on your respective state law. So, before electing to drop a coverage make sure it is not going against the law.


Is it cheaper to pay insurance every 6 months?

It is definitely better to pay your insurance coverage in full. That is because if you choose to pay by installment you will pay a little more. Also, you will subject yourself to processing fees if you pay electronically.

Is it more expensive to insure a new or old car?

Surprisingly, older cars are cheaper to insure simply because they are less valuable. Nonetheless, how old is a car doesn’t really matter. The most critical aspect is the made and the model.

For instance, a high-end old collection car, old luxury, and sports cars will definitely be more expensive to insure than a brand new Chevy. Also, old cars with very hard-to-find car parts usually have higher car insurance premiums. Moreover, cars with the highest risk of being stolen for parts or for resale by thieves also have higher car insurance premiums.

Just keep in mind, insurance companies do not treat old cars equally.

Other factors that can affect your car insurance premium

  • Your zip code

This is a very simple hack. Usually, before renting or buying a place you call home, you often hear the word “location”. Well, it turns out, it works as well for car insurance. Basically, the neighborhood you live in influence greatly your premium. In some cases, the price can drop by up to 30% just across the block. Many factors play like how crowded is the neighborhood, the crime rate, or the average household income.

  • Pay at least every 6 months in full

Typically, if you pay your first six months in full, you will get a discount. Then eventually if you keep the same trend your insurance cost will go down. This simple trick will help you save money on car insurance.

  • Your car brand

Normally, some car brands are famously known to break down easily or be involved in many accidents. That is because they are poorly manufactured.

  • Your car model

Likewise, with car brands. So, the older your car, the more you will pay. Keep that in mind.

  • Bundle up

A great saving hack is to bundle up your car insurance with other insurance policies. For example your house insurance. Also, you can simply pool insurance with another person. For instance, a family car insurance plan.



Nevertheless, one of the biggest mistakes you can make is getting too-few quotes. That is because one insurer may offer better rates but poor customer service. Another may offer additional options that are not fit for you. Hence it is important to compare quotes.