Moving Away? What You Should Know About Auto Insurance and Higher Rates

You may be moving to a new state, and your current auto insurance company may not be a licensed insurance provider in that state, or if they are, the rates they offer may be much higher. Certain states have higher insurance rates than others due to the percentage of claims filed. States like New Jersey, Washington D.C., New York, and Massachusetts typically have the highest average insurance rates.

It can also cost more to settle claims in certain areas, and this can add to the cost of your insurance premiums. Expensive cars cost more to repair or replace, and wealthy urban communities may sometimes have higher average insurance rates. Regardless of whether you’re moving to a new state or just across town, now is the perfect time to compare multiple rates and find the lowest one. Rates can differ by hundreds of dollars from company to company.

Check Insurance Rates BEFORE You Purchase a New Car

Before you buy a new car, it is critical to compare insurance quotes. This way you can see how much it may cost to insure and have quotes to return to if you end up buying the vehicle and need to quickly insure it. Cars that commonly have parts stolen, and cars that are expensive to fix will most likely cost you more to insure.

Shop Around for The Best Insurance Policy

This is the best way to save money on insurance. Many people find it easy to stay with the same company for years but fail to realize they have the potential to save hundreds of dollars each year by comparing quotes from multiple companies. You should shop around at least every 6 months to see if you are getting the best deal possible.

Consider a Multi-Policy Insurance

Many insurance companies offer various discounts if you insure more than one vehicle on a single policy, or if you have your home insured with the same company that insures your cars.

The Higher Your Deductible, the Less Money You Pay Out of Your Pocket?

You must be careful not to get in accidents with a higher deductible, as this is the amount that may come out of your pocket before your insurance company starts paying for the rest of the covered damage to your vehicle.

If you find yourself with more financial comfort in the future, you might think of lowering the deductible(s) you raised when you needed to save money.

Always Ask About Car Insurance Policy Discounts

There are many discounts available to drivers which include the following:

• The Good Driver Discount: As most of us know, the better we drive, the better our rates will most likely be. Most insurance companies offer discounts to drivers who have not had accidents or received tickets in the last 3-5 years.
• Low Mileage Discounts: Many insurance companies offer discounts on vehicles with low annual mileage. Many companies have a predetermined number of what they consider low mileage.
• The Safe Vehicle Discount: Many companies offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts, and antilock brakes.
• The Good Student Discount: Students currently enrolled in school often receive a discount on auto insurance for their good grades as many companies feel conscientious students make conscientious drivers. This is beneficial to all families, teenagers, and parents because it is known that teenagers, more specifically those in school are charged some of the highest premiums verses any other age group. This discount can be added with just a simple step of providing transcripts as proof of meeting the specific GPA requirements which is typically a B average or higher.
• The Senior Discount: Many insurance companies offer discounts and savings to drivers over 50, so it is likely that you can get a premium and find different ways to save money on insurance that aligns with a target budget. There is also no maximum age requirement to be added to someone’s auto insurance, the only thing to keep in mind with that is the potential fluctuations and premium increases.

• Rural Discounts: It is almost always cheaper to insure a vehicle in a rural area. Most accidents happen in larger cities, which means if you are a city-dweller, expect higher rates. This also applies to areas where car theft is most common. Generally, residents of these areas will likely be charged higher rates, which is commensurate with the higher risk.
• Occupational Discounts: Many companies offer discounts to people with certain degrees, such as engineers, scientists, and mathematicians. Historically people in these professions have been less likely to get in accidents. Likewise, many auto companies offer discounts to certified teachers and to people in the military (both active and retired).
• Auto Club/Professional Organization Membership Discounts: Many carriers offer discounts to people who are members of auto clubs (such as AAA) and other professional organizations.

Sources:

1. Best Car Insurance for Seniors, Investopedia.
2. Good Student Discount. Investopedia.