Choosing an auto insurance policy with the lowest possible premiums can be tricky, as many parameters are involved. The underwriter will consider things like your age, gender, marital status, zip code, and insurance tier. Also important are your driving record, credit score, and type of coverage needed. Important factors regarding your vehicle include the type and condition of the car you own, average number of miles you drive, and where you park your car.
Among the most common ways to minimize car insurance premiums are practicing safe driving habits (in other words, avoid accidents and moving violations), maintaining good grades (if you are a student), and combining policies for a multi policy discount.
If you still think your premiums are too high, more extreme measures can be taken to lower the cost of car insurance. Here are five unusual ways for some drivers to lower their premiums, as well as the overall cost of car ownership.
1. Switch Vehicles. Pricey cars are generally more expensive to insure than less expensive cars. Cost-conscious drivers will gladly forget social status concerns and drive a cheaper car. It not only costs less to buy a cheaper car, but also to insure one. For example, you may be able to omit comprehensive and/or collision insurance altogether, as the cost of major repairs on a cheap vehicle would likely be higher than the value of the vehicle itself. So it would be cheaper to replace the vehicle than to repair it.
2. Switch Jobs. This tactic is especially appealing to people who dislike their current jobs. Certain professionals, such as teachers, nuns, insurance underwriters, and law enforcement officers are perceived as safer drivers by insurance carriers. So these professionals enjoy lower premium rates on auto insurance than other types of workers. Not many drivers realize that getting a teaching job can actually save money on car insurance.
Another way to cut car insurance premium costs via job placement is to become an auto mechanic, or at least learn the basic skills. Fixing your own car can save thousands of dollars in repair costs and raised premiums following an auto accident.
Another good professional move is any job that allows telecommuting. Working from home will greatly reduce your mileage, which will greatly reduce your annual premiums. Click here to learn How to Work From Home in All 50 States.
3. Don’t Drive. If public transportation (or even carpooling) is an option for you, consider not driving for three to five years. In this way, you create for yourself a “perfect” driving record entitling you to a number of important discounts. Ways to avoid driving include working from home, working within walking (or biking) distance of where you live, living near public transportation, and/or carpooling to and from your job with a neighbor or coworker.
4. Get Married. Married people tend to pay less than single people for car insurance, because insurance underwriters tend to perceive married people as more mature and responsible than single people. So, if you and your significant other plan on cohabitating anyway, consider that getting married can save money for both of you on annual auto insurance premiums. Some unmarried couples actually get married in order to reduce their insurance costs.
5. Lie a Little. When an agent gives you a quote, there is no harm in claiming that you were quoted a lower amount by another insurance company. If the difference is less than two percent, there’s a good chance that the agent will meet your lower rate without bothering to check the accuracy of your statement. So if, for example, a Prudential agent gives you a quote of $100 per month in premium costs in car insurance, tell the agent you were quoted $98 by Allstate. Why not? The worst they can do is say no.