If you need car insurance, you’ll most likely look for monthly car insurance premium payments.
You can find other premium payment arrangements such as quarterly, semi-annually, and even annually (a full year paid in advance), and you would actually save money in the long run since your premiums would be discounted somewhat by the insurance provider in exchange for such payment plans.
However, paying for car insurance monthly is the most affordable short-term solution for the vast majority of drivers, especially young drivers.
Yes, paying for car insurance monthly is the most expensive way to go in the long run, but paying the required amount of money in advance in order to secure ultimately lower premiums is not affordable for a great many drivers.
Of course, you’re going to want to know how to get the best deal on monthly car insurance premium payments. You don’t want to pay any more for monthly car insurance premiums than is necessary.
How can you keep your monthly car insurance payments as low as possible? Well, needless to say, you’ll want to do some comparison shopping before you sign on to any policy.
However, there are also methods that you can follow to cut down on the car insurance premium rates that you would get from any provider.
To start with, age is a big factor. Your car insurance monthly payments will reflect your age group. If you’re a driver under the age of 25, you’re going to be considered a high risk driver. If you’re a male in that age group, you’re considered the highest risk of all.
So, if you are a very young driver, the best ways for you to save money on car insurance are:
- remain living at home with your parents and, instead of buying your own car, use theirs and remain on their car insurance,
- get married (you should not get married just to lower your car insurance, of course, but it certainly will work),
- take special drivers’ safety classes,
- drive carefully and never let yourself be a culpable party in a car accident,
- if you do buy your own car, don’t buy a sports car and try to buy a car that has multiple safety features such as anti-lock brakes and air bags; and,
- opt to carry a high deductible.
Once you hit the age of 25, if you have been a good driver you will see a significant rate decrease on your monthly car insurance premium payments.
However, there are still other things that you can do to lower the premiums still further. You may be hungry for that sports car by now, but probably you should still hold off on that until you are more established in the work force and making more money, as you will need to be able to afford both the car payments and the higher monthly car insurance rates.
If you want a nicer vehicle, get a “high line” or a “sedan”. Remember to find one that has built-in safety features, too.
Next, keep a good credit rating. Yes, car insurance providers today look at credit reports as indicators of who is more likely to keep on paying the premiums on time and who is more likely to be late or get dropped for non-payment.
If you have good credit you’ll get a lower premium payment. If you have health insurance, you can waive the car insurance PIP (Personal Injury Protection) and save money since you won’t need the double coverage in case of injury from a car accident.
Maintain a high deductible. Yes, this means that you’ll be required to pay more money out of pocket in the event of an accident, but if you’re a good driver in a safe car the chances of your getting into a bad accident are fairly low.
Needless to say, you’ll want to continue practicing safe driving habits. Don’t drive fast through the center of town or take other silly risks behind the wheel. Pay attention when you are driving and stay off of that cell phone, unless you have a hands-free headset that you can use. Don’t do anything that would easily get you a moving violation ticket.
Keep these tips in mind when you’re shopping and comparing monthly car insurance payments.