Car insurance is one of the necessary evils of car ownership in the U.S. While no one enjoys paying that bill every month, it can save you a bundle in the event of a car accident or other damage to your vehicle. Think you know all the facts? Read below to see everything you need to know about car insurance.
Paint Color Doesn’t Make a Difference…
We talked about this in a previous blog post, but it’s worth mentioning again. It’s a total myth that it costs more to insure a red car. Studies have found that people who drive red cars tend to be more aggressive behind the wheel, which could lead to more accidents and higher insurance premiums, but it has nothing to do with the color itself.
But the Kind of Car You Drive Does!
Generally, the smaller and faster your car is, the more you’ll end up paying in insurance premiums. Since some studies have shown that larger vehicles have less damage during accidents, it’s no surprise that it costs less to insure them. Something to keep in mind next time you’re out car shopping!
Pay Less Often
If you can manage to pay off your insurance bill annually (or semi-annually) your premium will go down considerably. We know it isn’t always doable to pay everything upfront, but if you can manage it, you can save a bundle in the long run.
Always Be Honest
It can be so tempting to check boxes that don’t apply to you on your insurance forms, especially if it could save you money. But, if there’s a problem with your car, you might not be covered thanks to those little white lies! Honesty is the best when it comes to your insurance policy, especially about where you park, how long your commute is, and who are authorized operators of your vehicle.
Your Life Can Affect Your Rate
There are all kinds of different factors that can affect your rate from different insurance companies. Everything from your credit score, your job, your age, even what state you live in. You should also keep in mind that different insurance companies weigh “risk factors” differently. That’s why they can claim on commercials that their customers saved so much by switching to their company.
Another aspect of your life that can affect your rates is what else you have insured. Some companies will offer you discounts if you “bundle” your different policies together. You can also potentially get discounts from your employer, professional and alumni associations, and certain other groups.
Keep Your Policy Current
Even if you’re planning on switching to a different insurance provider, don’t let your current policy expire before signing off on a new one! If an insurance company sees that you’re uninsured – no matter how short of a time frame it might be for – they’ll consider you a higher risk. Plus, you don’t want to be left in the lurch if you get into an accident or have some other problem with your car while you’re in the process of switching providers.
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