Every car owner or driver in the USA is required to have car insurance, including applying for liability insurance based on the state regulation. However, insurance is also one of the sources of major financial headache. Low cost car insurance that still fulfills all your protection needs seem like a dram, but in fact, there are factors that can help you getting much lower prices for the policy package. Some of them are natural, and others are depending on your driving habits and family condition.
Here are some factors that can help you getting low cost car insurance.
Clean Driving Record
This is definitely a no-brainer; the cleaner your driving record is, the better your chance to get lower policy price for auto insurance. This is not just about severe violation like driving under influence (or the new trend: texting while driving), but also seemingly minor violations like getting speeding ticket or parking on the wrong spot. Depends on the severity of your violation and the violation frequency, you probably will never be qualified for low cost insurance.
Driving School Certificate
Having driving school certificate will give you better chance to get discount or low price auto insurance, especially if you took your driving class at driving school with good reputation. This shows huge amount of responsibility compared to people who learn to drive without formal instructors. Plus point is given if you also take defensive driving class, which basically puts you in low risk driver group. Some insurance companies even offer discounts if you take driving class at driving school that works together with them, so make sure you do not miss the opportunity.
Car with Anti-Theft Devices
The safer your car is, the better your chance to get low cost car insurance. Therefore, it is better if your car has anti-theft and safety features such as car alarm, brake lock, airbag, side airbags, good seat belts, and such. Insurance companies put drivers with safer cars in low risk group, and you get better chance to get discount for your policy rate. Also, you get better chance for discount if you regularly tune up your car at official auto mechanic of your car’s manufacturer. Discuss with your insurance agent for various possibilities of discount earned from making your car safer.
Good Credit History
People with bad credit history are in worse position for bargaining to get low cost car insurance. Remember, car insurance company also checks your credit history, especially if you buy your car with credit card. Bad credit history not only shows the inability to be responsible (which might influence driving style), but also marks financial problem that will later bring problem to the insurance company. Therefore, they will not take risk with people who have bad credit history.
Personal Status
Your personal status can automatically give you advantage or disadvantage in term of discount when you are applying for auto insurance. For example, a man or woman with spouse and children has better chance to get low cost car insurance compared to single people. An adult who works at office has better chance to get cheap policy than a 17-year old student. These are viewed from the level of responsibility that automatically places that person based on his or her personal and work status.
Even among adults, the type of what you do for a living can influence your bargaining position. For example, people who earn medium to high salary at office gets better chance in getting discount than those who work freelance. However, personal status is not the only thing that stops you from getting discount, since you still can count factors like credit history, driving school certificate, driving record, type of car, and such.
Type of Work and Location
What you do at work and how you commute or basically use your car every day can determine whether you are eligible for discount or not. For example, people who live in places where the roads are rough, or those who totally depend on their cars for everyday life and work, are most likely to get low bargaining position for discount.
Are There Any Other Factors?
As a matter of fact: yes. When you apply for car insurance, there are some options that can help you getting low cost car insurance. For example, annual policy is better in term of adjusting with policy rate. Even when it sounds like a more expensive option, annual policy means you will only have to deal with one rate for the whole year, instead of possible two rate adjustments if you take six-month policy.