How much does car insurance Cost?
Determining the cost of car insurance is based on three primary factors:
- Your vehicle or vehicles
- Driving records for all drivers
- Insurance score (like credit score) of the named insured
All of the major insurance companies are going to run your loss history, credit score and motor vehicle reports before finalizing their quote. If they do not, you may be get a letter shortly after your complete your policy explaining why the rate has increased. Car insurance rates for most companies are very similar. What separates one company from another is primarily the discounts they offer. If you ask for and qualify for these discounts, you can certainly lower your car insurance costs substantially. Almost every auto insurance company will offer the following discounts:
Pay in Full – This discount is typically between 10 and 20% and should be considered if the funds are available.
Multi Policy – If the company offers more than just car insurance, the chances are very good that you can receive a substantial discount for having multiple policies with the same company. Insurance companies know that a multi-policy customer is less likely to shop their rates at renewal which reduces their customer acquisition cost and they pass that on to the customer with a discount of about 15% on each policy that is bundled.
Defensive Driver Course – Most companies will offer a “Defensive Driver” discount if you take an online course or classroom course. The course only costs about $25 and will save you about 10% over a two year period on your car insurance costs.
Good Student Discount – The good student discounts are normally offered to the named insured if they are attending college or to young drivers on their parent’s policy. Typically the insurance company will offer a 10% discount if the student has a B or better grade average. Most companies do require some sort of proof so be prepared to have a document signed by a school official.
Reducing your cost of car insurance can be accomplished by asking the right questions and shopping all players out there for the better deals.