3 Tips for Getting Lower Car Insurance Rates

Car insurance is something that nobody wants to think about actually having to use. However, it is hard to forget it is there when you are paying for it as part of your living expenses. 

In the US, the average cost of full coverage car insurance is $1,674 per year. That averages to $139 a month, and it is not the cheapest bill for a lot of people. 

But, what if you were to find out there were ways to reduce your car insurance rates? Here are three of the best ways to do it. 

1. Good Credit 

Believe it or not, one of the best things that you can do to save money on auto insurance is something that does not have to do with your actual driving. 

Yes, you can save $900 per year on the average car insurance premium if you have excellent credit compared to having bad credit. People with excellent credit pay about $640 per year while people with the worst credit can pay around $1,550 for car insurance. 

What is the reason for the dramatic difference? It is because people with good credit are more likely to be able to pay their premiums and deductibles for when they actually need to claim. 

Also, research suggests that drivers with worse credit are a lot more likely to have to file a claim than someone who has excellent credit. 

So, if you do not have good credit already, work on building that up to save money on car insurance. 

2. Good Driving Record

Another way you can help yourself is if you have a good driving record. To connect with this, having a good record for a longer period of time helps even more. 

For example, if you are a teenager in your first year of driving, it will not matter if you have never been in an accident. You will still likely have to pay higher rates than an older driver who has been in a couple. 

However, if you have had a clean driving record for say 10 years, you might be able to save as much as half the cost of premiums than if you had accidents or violations like a DUI on your record. 

For those with worse or no driving records, places like can help you. 

3. Type of Car 

Finally, you may want to reconsider what type of car you are driving if you care about how much money you pay for car insurance. A luxury car or sports car is going to run higher premiums than say a sedan or SUV. 

Also, the age of your car may play a factor. If your car is older and worth less, you will not need as much collision coverage for it. 

But, if your car is new and still has a high Kelley Blue Book value, you may have to pay more to cover the costs of a potential accident. 

Save on Car Insurance Rates

Your car, your credit, and your record can all help you take a bit of a burden off of your car insurance rates. But, there are even more ways to save money here if you do your research.  Check out our Finance section for more tips on saving money.