4 Qualifications for Getting Cheap Auto Insurance Rates

If you research the top 4 qualifications for getting cheap auto insurance rates, you will immediately know where you stand and how much you can expect to pay.

The qualifications are being a responsible driver, having low mileage, being affiliated with the right groups, and having a good credit score. While you don’t have to meet all of these qualifications, each one you achieve will lower your rates.

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Getting low-cost car insurance is not especially difficult these days. You do not need any special skills or education. In fact, it seems like everyone who provides car insurance quotes has some marketing strategy that leans towards cheap rates. They promise you just about everything to get you to pick them over the competing companies.

Separating Good Offers from Ploys

Unfortunately, many of these ploys are without a solid foundation. Some providers skimp on coverage in order to offer the lower rates. You may not realize this important point until it is too late.

In fact, you may pay your premium for years before you actually need to make a claim for anything serious. If you never have an incident or any kind of collision while you use their service, you may never know how lucky you are.

However, if you find yourself in the middle of a moderate to severe car accident, you had better have the facts about your coverage levels. When that fateful day arrives, you cannot turn the clock backwards.

The bottom line is simple. You receive the rates you deserve.

Don’t be surprised if your auto insurance company raises your annual premium because you have multiple violations.

A poor driving record coupled with too many car insurance claims is a surefire way to see a high auto insurance rate.

This is why you should learn which eligibility factors weigh the heaviest when it comes to cheaper car insurance rates. The time you spend educating yourself to the industry standards is the best investment in your finances.

Number One: Be a Responsible Driver

When you respect yourself by driving safely, you end up with a good driving history. This is the first and most important qualification for cheap coverage. No one will reward you if you take unnecessary risks while operating a motor vehicle. This includes using your cell phone, eating and tuning out mentally.

The Centers for Disease Control report that over 1200 people suffer from car-related injuries on a daily basis due to a lack of focus behind the wheel. This type of behavior is a perfect example of the highest level of disrespect and irresponsible driving.

Distracted driving affects the way you operate a car in three ways: manually, visually and cognitively. This means you do not control the steering wheel properly, remove your eyes from the road or do not concentrate on the task of safe performance. Any one of these issues can lead to disaster.

If you want to qualify for cheap quotes, you should show respect behind the wheel.

You should not feel a sense of entitlement when you drive your car, you should feel privileged. Look for ways to improve your driving and refrain from violating even the smallest laws.

Number Two: Maintain Low Mileage

The rising cost of gas may force more people to take this advice; however, it is a great way to get cheap rates without compromise too. Instead of removing a level of coverage, you should consider driving less and utilizing other modes of transportation.

The United States Department of Transportation’s Federal Highway Administration reports that the age demographic that adds the most miles to their cars each year are males between 35 and 54 years old. They tend to put in more hours at work, making them a higher risk for driving during peak hours. They may arrive earlier and stay at their jobs later, thus, becoming tired and inattentive road warriors.

After retirement at age 65, the number of miles driven annually by men drops from 15,859 to 10,304.

Driving becomes less necessary. So, instead of driving every day many men only drive once or twice per week. Older seniors may also rely on others to drive them around, like their children and even grandchildren. Lower mileage equates to lower car insurance rates.

If you live in a large metropolitan city, it should not be difficult to get a hold of the bus or train schedule. Drivers usually save money as the cost of mass transit is cheaper than filling a gas tank once or twice a week and providing the required vehicle maintenance.

Those in smaller rural communities or suburbs can consider carpooling. The odds of someone working close enough to share a ride are very high today. In fact, even if you make changes over the weekend to include shopping trips to the grocery, you will save on extra miles each year when you take turns with the driving responsibilities.

The low-mileage rewards are so impressive that most auto insurance companies give extra discounts as high as 25% in addition to the initial rate.

For example, Progressive offers its Snapshot program and low-mileage discounts that save drivers 25% in most states.

State-Based Programs

To make things easier for decent drivers with moderate finances, every state provides assistance to help drivers meet state laws. The most impressive exists in California. According to Consumer Watchdog, their low-cost auto insurance program applies to hundreds of thousands of California drivers.

You still need to have a good driving record, but the requirements are much more lenient. You can even have one point on your license. You also have to drive a vehicle that costs under $20,000 to be eligible for California’s state program.

After completing a short questionnaire online for eligibility purposes, you receive a list with the names of certified automobile insurance companies in the area. All you need to do is enter the zip code where you reside and the list generates automatically.

The insurance rates are subject to approval by each individual agent, however most policies cost approximately $350 or less per year. Unlike other state funded programs, which make some feel uncomfortable, the taxpayers pay nothing so it is a positive advancement.

Number Three: The Right Affiliation

Affiliates are quickly becoming the best way to ensure a cheap auto insurance rate. In fact, many of the larger companies like Berkshire Hathaway Incorporated have thousands. You may be a member of a very elite group without knowing it.

For instance, if you work for a company like Fruit of the Loom you should contact your Human Resources or Personnel department. The chances of getting a low car insurance rate are very good. They probably already have this benefit set up for you.

Another large company that has hundreds of thousands of employees is Dairy Queen. Berkshire is also a majority stockholder, which means you automatically receive exceptional options if you work here.

Most people think of motor clubs like Union Plus and AAA as the only way they can receive lower premiums. They hesitate because of the costs involves and, although they are reasonable, not everyone can afford them. There are other options if you look for them.

In addition to employers of large corporations, other clubs in the educational field also qualify. Sorority and fraternity members often receive lower rates. If you belong to one of the thousands of college-based groups, contact your leader and make an inquiry.

If you have a government job then visit this website to learn about car insurance and other discounts for which you might qualify.

Number Four: Decent Credit Score

Since the majority of the auto insurance companies use your credit history, get into the habit of checking yours annually. This is a great way to make sure your personal data remains positive. There is no way to guarantee an accurate credit history unless you verify the contents regularly. Mistakes happen all of the time and you may not receive the correct rate if you are not proactive.

The current laws prevent any car insurance company from denying coverage based on your individual credit report. However, they do not ban them from using the negative information to assess your risk and set your rates accordingly.

If they place you in a high-risk category because of erroneous data on your credit report, it can take a long time to reverse the damage. Instead of waiting for the problem to arise, take a different approach.

If you come across anything out of the ordinary, you have time to fix the problem before it gets out of hand. This includes inquiries that can drag your score down, even a little.

Be Responsible with Every Aspect of Car Ownership

Anything that affects your driving record negatively will be evaluated by your potential and current insurer. They are trying to determine how high a risk you present.

Look for ways to improve your driving skills.

If you have more than 10 years of experience, you may have a few bad habits to go with your good ones. You can find many online courses sponsored by your local Motor Vehicle Commission. They have games you can play to test your reflexes and simulated driving courses to determine your dexterity. You can also find classes to attend in person that teach you to develop new techniques.

Defensive driving is not the only way to improve behind the wheel. You can learn how the newest technology works to your advantage, especially braking and steering systems. Many did not exist when many folks first started driving, and this is why these courses can help you achieve excellence and lower your risk factor.

The FREE toolbox will lead you to the best car insurance rates today when you enter your ZIP code here!