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10 Car Insurance Strategies for 20 Somethings!
July 22, 2021
Let's Save Money on Car Insurance for Young Drivers!
Footing the bill for auto insurance can be tough for anyone. Especially for those in their 20’s or younger! Here’s 10 Legit Quickie and Long-Term Strategies that will help you combat the high cost:
Quickie Strategies:
- Compare - Compare quotes from multiple companies. The best way to shop for auto insurance is to call an Independent Agent who represents many companies. Have them quote your insurance with all the companies for which you would qualify, with the same or improved coverage. For drivers under 20, not all carriers are going to be interested, but at any age, you should obtain competitive quotes each year. Communicate with the agent that you want to work with them to build a relationship and be responsible with your insurance program.
- Buy the Right Car
- The car you insure can make a big difference. Each Make & Model of vehicle comes with their own insurance rating factors. There are some good sources for this information. Here's two below:
-BankRate .com: 10 most and least expensive cars to insur e
-AutoByTel .com: Top 20 Cheapest Cars to Insure
- Buy a Beater - This may sound radical, but if you are just starting out, it may make the most sense to find a car that you could drive for a few years that would not require you to carry Comprehensive or Collision. An insurance policy without Comprehensive and Collision can literally save thousands of dollars for younger drivers.
- Defensive Driver Course - A New York approved Defensive Driving course can save each drivers nearly 10% on their insurance over three years! The cost of this course is usually $25-$40. Your savings will be multiplied many times over the cost of the course. The Ryan Agency offers a discount on a Defensive Driving course offered by IMPROV. For more information see our page devoted to that course here . Make a note of the discount code “RYAN10” and click on the link to save.
- Deductibles - Proper use of deductibles is key to savings. Carry the highest deductible you can reasonably afford. If you can break even on a higher deductible within five years, it is worth consideration. The average driver has a Comprehensive or Collision claim once every eleven years. Run a quick Deductible Break Even Calculation to help with this decision. You are welcome to use our quick and easy Deductible Break Even Calculator here: DEDUCTIBLE BREAK EVEN CALCULATOR
- Discounts - Review with your agent the potential discounts your insurance company offers. There may be some discounts for which you are eligible that you are not currently receiving. There also may be some additional discounts you could qualify for with a slight change in habits.
- Insure with Parent(s) - If you still live at home, you may find that insuring your vehicle with the same company as the “rents” might lead to savings. This can be especially true if you are listed as a driver on their policy and are “spinning-off” on your own. This strategy can lead to multi-car and other discounts.
LONG TERM STRATEGIES
- Driving Habits - Watch your driving habits. Driving more defensively can pay dividends in the long run. Keep your claims history and motor vehicle record clean. Combined with other factors, good driving history can significantly reduce your insurance rates.
- Usage Based Discount Programs - Some carriers like Progressive, Allstate, Safeco and others offer discounts to people who submit their driving statistics electronically to the carrier. These companies provide a device that plugs into your car's diagnostic port which sends statistics directly to the carrier. If you are a defensive driver, this system could reduce your premiums by up to 30%. For a post I wrote specific to Progressive's Snapshot click here :
- Your Credit - Keep building a good credit score. Your credit has a significant impact on what you pay for your insurance. The vast majority of insurance companies use an "Insurance Score" in determining the base rate you pay. Though not the same as a Credit Score, an Insurance Score uses many of the same factors weighted differently. All other things being equal, a good Insurance Score will reflect positively on your insurance score. Pay your bills on time and limit the overuse of credit limits.
Those are some good ways to lower your car insurance. Follow the completion of the multiple strategies above, and ask your agent to re-quote your program every year. I think you'll like the result!
Interested in discussing how to save money on your car insurance? We LOVE to help! Please feel welcome to cal us at 607-324-7500
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
