Paying monthly bills can be a huge financial strain for most of us. If you are anything like me, finding a way to conserve and reduce bills is a full-time job in and of itself. As a woman in my 30s, I have not had to think about car insurance rates for quite some time. This is partially because I have not had many accidents or other incidents to raise my insurance rates. But the main reason I do not have to stress over my car insurance payment is because I took the time to find affordable rates from the beginning. With a 15-year-old son who cannot wait to get his license, my worry-free days are soon, regrettably, coming to an end. So again I am plagued with the question of how to have enough coverage, but not have to pay an outrageous amount each month.
How I have kept my monthly insurance rates low
The most important advice I can give you is to shop around. Each person’s situation is different, and you need to research which insurance company has the best rates for you. Check with your employer to see if any insurance companies provide reduced rates for your place of employment. We received a much more reasonable rate because our insurance company offers a discount for my husband’s company. We also lowered our payments by getting both our homeowner’s insurance and auto insurance from the same company. If you are willing to pay a higher deductible, then this is another option that will help reduce your monthly payment considerably. If you are a safe driver, with minimal accidents, then this is really something for you to consider.
Another important factor is the car that is being insured. It is common sense that you will not pay the same amount to insure a brand new luxury car as an older vehicle. If your car will cost more to replace, then understandably, it is going to cost more to insure. Both my husband and I drive vehicles that are not top of the line, but work well for our family. Also, many companies will give you a reduced rate for safety features or anti-theft devices.
How to afford a teenage driver
As I am anticipating my son being added to our insurance policy, it has really gotten me thinking about how my parents kept my insurance rates low. Unfortunately, with my teenager being a boy, he is inevitably going to have higher rates. However, there are still many things that I can do to keep his rates down as low as possible. Many insurance companies give a reduced rate if your child makes good grades. If they see them as a responsible teenager, then they assume they will be less likely to get into an accident. I am really hoping this will be the case. You can also receive a lower rate if your child takes as little as three driver’s education classes. FYI, this also reduces your stress level when someone else is risking their life riding with your inexperienced, teenage driver. Again, car choice is an important factor. If your child drives a sports car their rates are going to be much higher. And what are my son’s top two car choices right now, a Camaro and a Mustang of course!