Overwhelmingly High Premiums—How Can I Secure a Better Rate Next Time?
I’m a 19-year-old male who recently got my first car after driving my parents’ for years. Unfortunately, my driving record isn’t the best, and I’ve noticed that some of my friends with similar backgrounds are paying much lower premiums. I have one not-at-fault accident and one speeding ticket in the last three years. The best rate I found was $1,400 for six months with Geico, just for liability coverage.
My car is a 2007 Honda Accord—nothing fancy. What steps can I take to find cheaper insurance when it’s time to renew?
It’s definitely tough to see high insurance premiums, especially as a young driver. Here are some tips to help you potentially lower your rates when it’s time to shop for insurance again:
Improve Your Driving Record: Since you have one not-at-fault accident and a speeding ticket, try to maintain a clean driving record moving forward. Insurance companies often reward safe driving with lower premiums over time.
Take a Defensive Driving Course: Completing a defensive driving course can sometimes earn you a discount on your insurance. Check with your insurance provider to see if they offer any incentives for completing such courses.
Shop Around: Don’t settle for the first quote you receive. Rates can vary significantly between insurance providers, so take the time to compare quotes from different companies.
Look for Discounts: Many insurers offer a variety of discounts that you may qualify for. These can include good student discounts, bundling insurance policies, or discounts for low mileage.
Increase Your Deductible: If you feel comfortable with it, consider increasing your deductible. A higher deductible usually results in lower premium payments, but keep in mind this means you’ll pay more out of pocket in the event of a claim.
Consider Usage-Based Insurance: Some companies offer usage-based insurance that tracks your driving habits. If you’re a safe driver, this can lead to significant savings.
Stay on Family Policy: If possible, consider staying on your parents’ insurance policy for a bit longer. Often, it can be cheaper to be added to their policy than to have your own as a young, inexperienced driver.
Secure Your Car: Installing security features (like an alarm or GPS tracker) on your Honda Accord may qualify you for discounts as it reduces the risk of theft.
Reassess Coverage Needs: Given that your car is a 2007 model, reassess whether you need comprehensive and collision coverage. If the car’s value is low, you might save money by opting for liability only.
Review Your Credit Score: In many states, your credit score can affect your insurance premium. Make sure your credit is in good standing, as a better credit score can lead to lower rates.
Remember, it’s always a good idea to periodically review your insurance and make adjustments as your driving habits and lifestyle change. Good luck!