You will be affected by the decisions you make throughout your life. When it comes to assessing the risk of an average driver and the impact that his decisions have on his risk factor, auto insurance companies do their research. The insurer will assess how risky your decisions, such as buying a house or teen insurance, are. These are the top five most important events that can affect your auto insurance rates.
1. Growing up: Yes! Growing older has its upsides. Although you don’t choose to grow up, we all do eventually. Crossing the 25-year insurance threshold makes a big difference in car insurance. Car insurance rates drop for individuals over 25 who are considered less risky. That’s at least one reason not to sing “19 until I die.”
2. Marriage is about commitment and compromise. You will be adjusting to a new person in your life. Your car insurance quote is one thing that will change once you say “I do”. Your insurance rates will automatically drop if you marry a person under 25. You are more responsible, have a stable lifestyle and are less likely to be injured by your marriage. When you get married, car insurance companies will lower your rates.
3. You might need to move to a different neighborhood. Auto theft is less common in safer neighborhoods. Your car insurance rates will drop if you move from the city to the suburbs. This is due to the lower chance of your vehicle being stolen and vandalized. To lower your insurance premium, if you don’t plan on moving and live in an area that is prone to theft or accidents, you might consider installing a garage or anti-theft devices. Moving to a lower state will reduce your insurance rate.
4. The purchase of a new car for your child: It can be daunting to buy a car for your child who is going off to college. There are many options to make this easier. Do your research! Teenagers have the highest insurance rates because they are still learning to drive. Teenagers are more likely to drive recklessly on the roads, which can cause accidents and pose a risk to other drivers.
A good way to reduce your teenager’s insurance costs is to ensure that he/she has a 3.0 GPA in high school and college. Many auto insurance companies offer discounts to students who are good at school. This shows that they have a sense of responsibility and is a safer driver.
A used car is the best choice because it is cheaper to insure and there is less chance of theft than a new sports car.
5. Being a senior citizen has its pros and cons. After years of independence, they may have to stop driving. Sometimes, it can be a good idea to have a great driving record and be in good physical condition. A simple refresher driving test can help you keep your insurance rates low. Senior citizens are less likely to be on the roads, so it is important to compare auto insurance rates. Ask for any discounts the insurance company may offer for those who only drive a few miles per month. Your auto insurance will increase as you age due to decreased vision and motor coordination.
Consider your options before you make any major life decisions. Also, consider how these decisions may impact your auto insurance rates. Don’t forget that there are auto insurance companies who will give you discounts at any stage of your life. You can search online to get free auto insurance tips and quotes.