6 Ways Parents Can Save Money on Auto Insurance

When you have teen drivers in your house, cheap car insurance is often hard to come by, but that doesn’t mean it’s impossible. Now that your teen is old enough to drive, you will need to update your car insurance policy to include him or her. Fortunately, there are ways to avoid paying outrageous fees thanks to some cheap car insurance tricks and tips.

One way to lower your car insurance rates is to encourage your teen to get good grades in school. Many companies offer cheap car insurance rates for honor roll students. Make it a point to stay on top of your teen so you can ensure they are doing good in school.

Assist with homework and help your teen study for tests and quizzes. Not only will you be providing you teen with a better, brighter future, you’ll also be saving money on cheap car insurance.

Another way to save money on your policy is by purchasing your teen a reliable used vehicle. Newer cars and sports cars often mean higher premium rates. You and your teen need to discuss a budget for a used car and stick to it. Shop around rather than purchasing the first vehicle you find.

Make sure the vehicle meets safety standards before you buy it. Also, call your insurance company and ask what the rates will be to insure the vehicle. You will quickly find that older cars often equal cheap car insurance.

Encourage your teen to practice safe driving. In many cases, an insurance company will lower rates if your teen proves him or herself to be a safe, reliable driver. You will quickly find that teens who follow the rules of the road are capable of obtaining cheap car insurance compared to parents of teens who break the rules of the road.

As it currently stands, automobile accidents are the number one cause of death among American teenagers between 15 and 19 years old. In other words, by encouraging your teen to obey traffic laws, you are promoting their safety while allowing yourself to obtain cheap car insurance.

Enroll your child in a driver’s education course. Companies will often provide cheap car insurance to teenagers who have completed a safe driving course. Contact your local insurance company to find out if there are specific courses your teen needs to complete in order to qualify for cheap car insurance rates.

Once your teenager heads off to college, he or she may be entitled to cheap car insurance. Car insurance companies often lower rates as your teen ages, so make sure you check in with your company often to find out about lowering your rates when your teen has a birthday.

Assign your teenager a specific car. If you, your spouse, and your teenager each have your own vehicle, you will need to specify who drives each one. If you do not assign your teenager to a specific vehicle, an insurance company may wrongly assume that your teen is driving a more expensive or newer vehicle, which can raise your insurance rates.

Obtaining affordable car insurance is entirely possible despite having a teen driver under your roof. Fortunately, each one of these tips and tricks will put you on the path toward lowering your monthly rates.

Why Is Cheap Car Insurance Important?

Cheap car insurance saves millions of Americans money every year, and you must find an agent in Texas who is going to help you create a cheap car insurance plan that is perfect for your family. This article explains how you can create a cheap car insurance plan, and you may ask questions of your local Texas agent to help get the coverage you need. There is more than one way to save money on your car insurance, and you must exhaust all options before purchasing your policy.

#1: Collision Or Comprehensive?

You must choose between collision and comprehensive insurance when you speak to your agent, and your agent will outline the coverage you get with each policy. A collision policy is cheap because it only offer repair coverage. Comprehensive coverage offers you a number of options, but you need not pay for every option. Cheap car insurance may come in the form of a collision policy, but you may need more if you own a new or valuable car.

#2: Which Comprehensive Options Do You Need?

Comprehensive options for cheap car insurance include rental car assistance, roadside assistance and coverage for your personal items. You may pay for the options that you need, and your local agent in Texas will remove the options that you do not need. You will pay less for your cheap car insurance, but you will get the coverage you need in return.

You are not stuck with the worst coverage possible when you purchase cheap car insurance, but you must understand the sort of coverage you are getting before you make a decision. Comprehensive policies can become cheap car insurance, but you must not allow the cost of the policy to get out of hand. You will lose quite a bit of money on your policy if you do not get help from a local agent.

#3: Filing Claims On Cheap Car Insurance

Filing claims on your cheap car insurance policy should be as simple as talking to your agent or calling the insurance company. Cheap car insurance policies with awkward claims rules are not worth the money, and you must ensure that you choose a cheap car insurance policy that works like any other. A local agent in Texas can file the claim for you on the spot, and your cheap car insurance will pay off with quick payouts.

#4: How Do You Compare Cheap Car Insurance?

Cheap car insurance is easy to compare when you use online resources. Online resources will help you check the prices, coverage and available agents in Texas. You can eliminate the companies that do not have agents in Texas, and you may eliminate the companies that do not have agents in your area. Choose the company that offers you the lowest price with the most services. Cheap car insurance need not feel like a waste of money, and you must go with a policy that makes you feel safe on the road when you head to work or on long trips.

You Can Make Cheap Car Insurance Happen

Most people assume if they go to a couple of online auto insurance quote sites, plug in a few numbers and key in their personal information, they’ll come up with cheap car insurance. This may be true only to a point. You see, much of your rates are determined by specifics that apply to you, which you may be able to change. For instance, improving your credit history, moving to another location, driving the right car and improving your driving record are all within your power to change. Each of these things can have a substantial impact on cheap car insurance rates in Texas and many other states.

Credit History

It’s surprising, even today, a large amount of people don’t realize that auto insurance companies are basing much of their insurance rates on your credit history and score.

The fact is, before approving your insurance application, auto insurance companies want to make sure you’re a good credit risk. They want to know you are going to pay your premium on time and the full amount.

Therefore, insurance companies use credit reports to determine your past paying history for all sorts of bills. They’ll be looking to see if you paid on time or how many missed payments you’ve had in the last year. In addition, they’ll be looking to see if you defaulted on a loan or typically run your credit cards up to the limit.

These types of actions could indicate you are a poor credit risk. If their research indicates you’re a high risk, you’ll definitely pay for it with a much higher insurance premium, and cheap car insurance is definitely out of the picture for you.

You can get cheap car insurance by being responsible and improving your credit picture.

• Pay your bills on time.

• Don’t default on bills.

• Pay down credit card bills to reduce debt.

Zip Codes Make a Difference

There is no doubt about it, cheap car insurance rates are affected by your zip code or to be specific, your geographic location. People that live in cities with higher incidents of crime, vandalism, driving under the influence and auto accidents usually pay higher premiums and cheap car insurance just isn’t an option.

Texas is a good example where some counties and cities are particularly high. Residents in Harris County pay an average of 11 percent more than the rest of the folks in the state. Folks in Dallas County pay about 9 percent more than the state average.

Yet, Travis County in Austin runs about 6 percent less than the average, and Tom Green County in West Texas is the very lowest at 22 percent below the average. If you’re a Texas resident and you’re thinking about a move anyway, it might not be a bad idea to check into cheap car insurance rates in another county.

Vehicle Choice

You can greatly improve your chances of getting cheap car insurance by purchasing a vehicle that is inexpensive to repair or even replace if it’s totaled in an accident.

Driving Record

Cheap car insurance is certainly a possibility if you drive safely, avoid accidents and don’t get senseless tickets for speeding or parking. Having tickets and citations on your record are like a red flag when applying for cheap car insurance

Pay all your fines, don’t get new tickets, and consider taking a driver safety course, which may help to lower insurance rates.

You have a good chance of lowering auto insurance costs and being approved for cheap car insurance, if you drive safely, maintain good credit, drive an inexpensive car to repair and live in a neighborhood with lower insurance rates.