Cheap Car Insurance for High-Risk Drivers

  • Car Insurance

Insurance companies profit by carefully calculating probability and then accounting for it. Your insurance premiums are closely tied to your risk factors; the more at-risk you are, the higher those premiums will be. But that doesn’t mean that you can’t get affordable insurance just because you’ve had a few violations.

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What Makes you High-Risk?

You may be deemed high-risk if you have received a violation of any kind. There are minor and major violations, ranging from parking fines, moving violations and traffic violations to drunk driving and more. The most serious and destructive violations include:

Driving Under the Influence (DUI)

A DUI, also known as a DWI, can have a big impact on your car insurance premiums. It’s a citation that results in more bodily harm and property damage than any other, and it’s also connected with more death benefit payouts than any other type of driving citation, making DUIs a huge red flag for all insurance companies.

If you have a recent DUI conviction on your record, you’ll struggle to get comprehensive insurance coverage for a reasonable price, but there are a few things you can do, as discussed in our guide to Getting Car Insurance with a DUI.

Racing and Speeding

Speeding increases your risk and many insurance carriers will charge you over $100 more for every speeding ticket that you receive. If you’re charged with “Racing”, the penalties are more severe and you may be charged an additional $1,000 a year.

It only makes sense, as street racing turns you into a high-speed liability. Your car insurance premiums increase because you’re more likely to do harm to yourself, your car, your passengers, and all innocent bystanders. It doesn’t matter how good of a driver you think you are, in the eyes of an auto insurance company, you’re an expensive disaster waiting to happen.

At-Fault Accident

A car accident that was caused by you and led to significant payouts by the insurance company can have a massive impact on your auto insurance rates. 

Collision coverage and liability coverage are essential components of any insurance policy and if there is extensive property damage and motorist injuries, resulting in major repair work and liability claims, the provider will be hit with a sizable bill.

It should come as no surprise, therefore, that an at-fault accident can increase your insurance premiums by over $600 a year.

Reckless Driving

If you’re cited for reckless driving, your premiums may increase by anywhere from $300 to $1,000 a year. The risk of bodily injury and property damage increases, as reckless driving is defined as driving without care and putting yourself and others in danger.

Other High-Risk Factors

You are also considered to be a high-risk driver if you’re young and male, as young drivers are significantly more likely to claim than drivers aged 25 or older and male teen drivers are twice as likely to claim as females. That’s why young drivers pay higher car insurance rates on average.

But your demographic and driving record aren’t the only things that can prevent you from getting a cheap auto insurance policy. You’ll also be charged higher rates if you:

Have a Poor Credit History

Your credit score impacts pretty much everything that you do financially. It can reduce your chances of getting a credit card or mortgage; it can stop you from getting security clearance and securing the job of your dreams. 

Believe it or not, your credit score is also considered by your insurance provider, as studies suggest that bad credit policyholders are more likely to claim.

Live in a High Claim Area

The best safety features and the safest cars won’t matter much if the driver lives in a high claim area and drives a car that is frequently stolen. In this case, you’re paying for the mistakes of others as the insurance company tries to balance its books.

Have no Driving Experience

Your experience is key, so your driving history will always be factored into the equation when applying for car insurance quotes. If you have some experience behind you and haven’t made any claims, you can secure lower premiums. If not, you have no proof that you’re a good driver or a safe driver and will be considered a risk.

Live in Rented Accommodation

Your credit score isn’t the only surprising criteria considered by insurance carriers. They will also consider whether you are a tenant or a homeowner, with the latter offered lower premiums on average. Again, it all comes down to probability, as studies suggest that renters are more likely to claim than homeowners.

How to Get the Cheapest Car Insurance

As noted above, all insurance companies calculate risk and probability to determine how much of a liability you are. This is true for life insurance, homeowner’s insurance, and pretty much all other forms of insurance. Your goal, therefore, is to reduce that risk, keep that liability to a minimum, and make sure you look like a prime candidate in the eyes of car insurance companies.

To get cheap car insurance, therefore, just keep the following in mind and you can secure some car insurance discounts:

Choose the Right Car

A new car can reduce your premiums, especially if it comes with a high safety rating and has anti-theft features installed. SUVs have the highest safety ratings and can save you a lot of money when dealing with major insurers like Geico, State Farm, and Allstate, but there are some highly insurable sedans and smaller cars as well.

Look for the safety rating, check for an anti-theft device, and scour the rates before you buy your car.

Get Training

By completing a defensive driving course, you can prove to your insurers that you are a safe driver who knows what they are doing on the road, thus securing a lower rate than you would get if you didn’t have that all-important certificate.

Improve your Credit Score

A few points can make a big difference, netting you a policy discount and giving you more options if you ever need to apply for a new line of credit or loan. 

Multi-Policy Discount

By taking out different types of coverage with the same provider, you can benefit from bulk rates, known as “bundling”. Like a multi-car discount, you’re essentially getting wholesale rates on your insurance policies.

Providers like Progressive, Nationwide, State Farm, and Geico offer discounts when you bundle car insurance with home insurance, life insurance, and more.

Bide Your Time

Time is your friend when looking for the best car insurance rates. If you have multiple violations and you’re still a teenager, then making do without a car for a while could save you a small fortune. Not only will those violations expire, but you’ll be a little older and will therefore not be considered as much of a risk.

You’ll still be considered high risk as a new driver, but there will be significant savings to make, nonetheless.

Bottom Line: Getting the Cheapest Insurance Policy

Being high risk doesn’t mean you can’t get insured. It just means your car insurance policy will cost more than someone who has a clean driving record and ticks several other boxes with regards to the ideal policyholder. By searching, comparing, and doing what you can to decrease your liability, you can keep those insurance costs to a minimum and save hundreds of dollars a year.

Source: pocketyourdollars.com

Teen Car Insurance: Cheap Car Insurance

  • Car Insurance

Teen drivers are significantly more likely to claim on a car insurance policy than adults. Car insurance companies offset these costs by charging higher rates, often 3x or 4x more than adult drivers. But by shopping smartly, comparing prices, and utilizing a few simple tricks, a teenage driver can save hundreds on car insurance premiums without sacrificing coverage.

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Why Young Drivers Pay More

Insurance is all about risk and probability. The more likely you are to claim, the higher your insurance costs will be. And because they can’t look into the future, they have to base this probability on statistics. They know, for instance, that a driver aged between 16 and 18 is between 1.5x and 2x as likely to claim as one aged between 18 and 20, and more than four times as likely as one over the age of 25.

A teen driver is three times as likely to be involved in a fatal crash than someone aged 20, and, according to the CDC, this age group accounts for 8% of the total cost of road traffic accidents, even though they make up for just 6.5% of the total population.

It’s not just the age group, either, as research also suggests that male drivers are twice as likely to claim as female drivers. All of these statistics are taken into account when establishing insurance premiums, which is why they tend to be much higher.

Cheap Car Insurance Quotes for a Teenage Driver

New drivers can expect to pay considerably more than experienced drivers with a safe driving record. This is especially true for 16-year olds, who are charged more than any other age range.  To give you an idea of just how different costs can be, take a look at these premium averages:

  • 16 = $3,900
  • 17 = $3,500
  • 18 = $3,100
  • 19 = $2,200
  • 20 = $2,000

Your age, car, record, and discounts (discussed below) will typically have more impact on the policy cost than the insurance provider you choose, but the rates still differ considerably. After getting a free quote from several top providers, we found that the following offered the cheapest rates on average:

  1. Geico
  2. State Farm
  3. Nationwide
  4. Progressive
  5. Allstate

Teen Car Insurance: Adding a Young Driver to your Policy

One of the best ways to save money with young driver insurance is to add them to your policy. If you have been with the same insurer for a number of years, there’s a chance they will contact you when your child is ready to drive. They likely know your children’s ages and use automated promotions to send them offers as soon as they are of age.

If not, contact them and get a quote and then compare this to quotes received from affordable car insurance providers.

Generally speaking, the average household can expect a price rise of around 150%, and the rate is much higher if the new driver is a male. 

Insurance Discounts for Teens

If you’re a good driver and a safe driver, you can save money on your quotes, even when you’re a teen driver added to your parent’s policy. There are numerous discounts that can help you, including:

Good Student Discount

If you have good grades, you can get cheap car insurance, it’s as simple as that. The rates will still be higher than what you’d be quoted as an adult, but good student discounts can save you between 5% and 10% every year. Generally speaking, you need at least a B average to take advantage of these discounts.

Living Away

If you’re a student living away from home, you can qualify for a discount. Some insurance companies offer as much as 30% off, but the average is around half this. To qualify, you need to be living away from home, such as on campus, while at school.

Defensive Driving

If you have completed a defensive driving course or other driver training, then you can get the best car insurance for less. These courses prove that you can handle yourself on the road and they greatly reduce your chances of making a claim.

Type of Car

One of the biggest things influencing car insurance rates is the type of vehicle you drive. A new car typically comes fitted with anti-theft and safety features, securing you a driver discount by reducing the chances of that car being stolen or involved in a serious accident.

The safest cars are all SUVs, which might not be the best or cheapest choice for new teen drivers. However, as long as you focus on a relatively new vehicle, and don’t opt for a sports car, you can secure a good price.

Low Mileage

You can get cheap car insurance if you drive very little and agree to a telematics device being added to your car. This device will be used to monitor your driving habits, focusing on how many miles you do. 

If you’re a teen driver doing just a handful of miles a day, this could be a great option and may save you between 30% and 50%.

Things that Could Increase Auto Insurance Rates

Numerous things can increase the cost of insurance coverage and this is true whether the young driver has their own policy or has been added to a household policy.

  • Minor Violation: A minor violation can increase your auto insurance premiums by as much as 40%. These violations include speeding tickets, which are far more common in younger drivers.
  • Major Violation: A major violation could double the cost of those premiums. These violations include DUIs and road traffic accidents.
  • Claims Record: How many claims you have will dictate how much your auto insurance coverage costs, so keep this in mind the next time you apply.

Bottom Line: Cheap Car Insurance for Teen Drivers

Teen drivers can be very expensive and if you need to add one to your policy, you can expect those rates to climb considerably. However, your kids need to learn somehow; they need to build a safe driving record, get some experience, and prove to auto insurance companies that they deserve a discount in the future.

So, let them get their learners permit, help them buy their first car, and encourage them to collect car insurance discounts and drive safely. That way, in just a few years, they’ll have the experience and the record needed to get even cheaper insurance.

Source: pocketyourdollars.com

Get Cheaper Car Insurance in 9 Simple Steps

  • Car Insurance

Buying car insurance can seem complicated and confusing; there are many factors to consider, countless elements that can impact your premiums. But in many ways, it’s just like purchasing any other product, as you want the best possible product for the lowest possible price.

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Compare free personalized quotes from the nation’s top providers.

To get a cheap auto insurance policy, keep the following tips in mind:

1. Always Compare

Just because you have used a specific insurer in the past doesn’t mean you should use them again. It doesn’t matter if they’ve been good to you; it doesn’t matter if they offer what seems to be a reasonable rate. You should always compare car insurance quotes to make sure you’re getting the very best deal before you sign on the dotted line.

Compare offers from multiple different car insurance companies to see which one offers the cheapest car insurance coverage for your needs. 

2. Search When Your Circumstances Changes

Every time your circumstances change significantly, you should compare insurance costs and see if you can get cheaper rates by taking your services elsewhere. Here are a few of the big changes that have the most impact on insurance costs:

  • You have purchased a new car
  • You have multiple cars to add to a single policy (multi-car discount)
  • You need to add or remove a driver (including a young driver)
  • You have gotten married or divorced
  • You have purchased a home or are moving to a new house

3. Get a Multi-Policy Discount

All major insurance companies (Geico, Allstate, Progressive, Nationwide, State Farm) offer discounts when policyholders purchase numerous different policies. This is known as “Bundling”, and essentially means you’re getting a bulk rate by combining policies such as home insurance, life insurance, car insurance, and more.

Homeowners insurance and car insurance offer the highest average discounts when they are combined, but you can save with life and renters insurance as well.

If you already have several insurance policies with the same provider, there’s a good chance the provider will offer you the best car insurance rates as well.

4. Check for Car Insurance Discounts

​Car insurance discounts are offered by insurance carriers and, occasionally, guaranteed by the state. There are many different discounts available and these will depend on your age, job, driving record, and skills. 

For instance, you can get a sizeable discount if you are in the military, live on a college campus or have good grades. You can also save big if you have completed a defensive driving course, as it proves that you’re a good driver and know how to handle yourself in difficult situations, thus reducing your liability on the road.

5. Choose Your Car Carefully

If you don’t already have a car, then choose carefully, focusing on safety features and anti-theft devices. Cars that have a high safety rating and are fitted with anti-theft devices are significantly less likely to be stolen and involved in a costly accident, so the rates drop quite significantly.

SUVs like the Honda CR-V and the Subaru Outback offer some of the best features and the cheapest car insurance premiums, but there are many smaller cars that fit into this category as well. 

Conversely, if you buy an old car that doesn’t have an anti-theft device or any safety features, your car insurance premiums may increase by over 50% when compared to a newer vehicle.

5. Raise Your Deductible

When you increase the deductible, you reduce the insurer’s potential cost and can secure a lower rate as a result. Your bank balance will take a hit if anything does happen, but if you’re a safe driver, those lower premiums could save you a small fortune over a few years.

6. Improve Your Credit Score

Car insurance is another area in which a good credit score is key. A good or excellent credit score increases your chances of getting affordable car insurance, as research suggests that bad credit drivers are more likely to claim than good credit drivers.

So, increase your credit limits, clear credit card debts, pay off loans, and stop applying for new lines of credit. With a little effort, you can boost your credit score significantly in just a few short months.

7. Drive Carefully

It goes without saying, but if you want cheap car insurance you need to keep claims to a minimum. Every time you have an accident or receive a violation, your insurance provider will hike the price of your car insurance policy, potentially adding hundreds of dollars onto the annual cost. 

A clean driving record is one of the single biggest factors in acquiring cheap car insurance, and it will also save you a lot of stress, hassle, and deductible payments.

8. Only Keep What You Need

Insurance is essential, but you may not need comprehensive coverage. If you have an old car that’s only worth a few hundred dollars, there’s very little need for collision coverage and you could save a small fortune by removing this coverage from your policy. 

Liability coverage is still key, but unless you actually plan on fixing your car when something goes wrong, you don’t need comprehensive collision coverage. Speak with an insurance agent for more information on the types of coverage you need, including bodily injury, property damage, and liability insurance.

9. Limit Your Driving

The less time you spend behind the wheel and the fewer miles you drive, the less likely you are to be involved in an accident. It goes without saying, and it’s something that insurance companies will always consider when providing you with a quote.

If you drive very little, let them know; if you drive a lot, consider some travel alternatives and you’ll save money on gas as well as insurance coverage. The best rates are available for those who drive for less than 10,000 miles a year, but the number of miles and the available discounts will depend on your state and your chosen insurer.

Bottom Line: Time Equals Money

If you don’t have a lot of free time on your hands, it’s tempting to just go for the first quote that you receive and get everything over and done with. But by devoting a little time and effort to the process, and taking just a few hours to compare, you could save yourself over $1,000 during the year!

Source: pocketyourdollars.com

Getting Cheap Car Insurance after DUI

  • Car Insurance

A DUI conviction can be pretty disastrous for your career and bank balance, especially if you drive for a living or rely on your car to get to work. It’s a mistake, and a very reckless one at that, but it could cost you up to $1,000 as well as a maximum sentence of 12 months, numerous points off your driver’s license, and even a suspension.

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If you manage to avoid the worst penalties and escape unscathed, or you pay your fine and suffer the consequences, there’s still one big issue to deal with: Your car insurance.

Insurance quotes increase significantly for all high-risk drivers and if you have a DUI or DWI on your record, you’ll find yourself in that category. All is not lost, however, as there are ways you can secure cheap insurance when you have a blemished record.

What is a DUI, DWI, and OUI?

DUI, DWI, and OUI are three different terms used to describe pretty much the same thing. According to the NHTSA, Driving Under the Influence (DUI) and Driving While Intoxicated (DWI) are the two most common, and most states will either use one or the other to refer to the act of driving while under the influence of alcohol or drugs.

Some states use both of these terms, in which case they tend to differentiate between alcohol and drugs, with DWI referring exclusively to alcohol and DUI to both drugs and alcohol. You will also see the abbreviation BAC, which means “Blood Alcohol Content” and is used to determine if someone is over the alcohol limit, and OUI, which means Operating Under the Influence and is only used in Massachusetts, Maine, and Rhode Island.

In any case, all of these are serious offenses and can result in fines, jail time, and a significant rate increase on your car insurance premiums.

Can You Get DUI Insurance?

A DUI is a major violation, something that can significantly increase your car insurance premiums. You can still get car insurance after a DUI, but you may have to work that little bit harder to find a suitable price. This is generally true regardless of how your drunk driving conviction was dealt with, and whether or not it resulted in a fine or jail time.

These additional expenses are charged not as a punishment, but because your risk has increased. Insurance is all about risk calculation. The younger you are and the more violations you have on your record, the more of a risk you are and the higher your premiums will be as a result. 

A DUI offender is deemed to be a huge risk, and this will be reflected by the premiums they are asked to pay every month.

Cost of DUI Car Insurance by State

The average cost of insurance will differ greatly depending on your state. This is true even before you factor a DUI into the equation, but once you start adding minor and major violations, the differences become even more significant.

States where a conviction will have the least impact in terms of higher rates, including:

  • Florida
  • Rhode Island
  • West Virginia
  • Georgia 
  • Minnesota
  • South Dakota
  • Alaska
  • Illinois
  • Colorado
  • Delaware
  • Iowa

One of the cheapest states we found, with regards to how little the auto insurance rates increased, was Maryland.

All of the following, however, typically charge much more:

  • North Carolina
  • Michigan
  • Arizona
  • California
  • Hawaii
  • New Jersey

How to Get Cheap Insurance After a DUI Offense

The cheapest way to secure car insurance after a DUI is to shop around, compare, and keep searching for the best rates. Those rates will always be higher than what you were offered before the conviction and you simply won’t be offered the best rates that the insurer can provide. However, by doing your research, comparing multiple providers and persisting until you find a good rate, you can find a reasonable policy.

Many drivers will stick with the insurer they had before the DUI charge, either because they’ve used them for years, have secured a multi-policy or multi-car discount, or simply can’t be bothered to make a change. There is a chance your current provider is offering the best rate, but more often than not, the best car insurance policy can be found elsewhere.

We have listed a few of the best options below, in numerical order from the cheapest to the most expensive. However, due to the differences between locations and policies, we recommend getting quotes from all of them:

  1. State Farm
  2. Progressive
  3. Farmers
  4. Geico
  5. Allstate
  6. Nationwide

There are other auto insurance companies to consider as well. This is just a small selection of the biggest and best providers based on a few dozen quotes. We encourage you to check as many as you can.

Non-Owner Insurance

Non-owner insurance is a cheap way to get cover and is offered to individuals without regular access to a motor vehicle. Depending on your state, you may need to file an SR-22 form and pay a filing fee, but this is generally no more than $25 and the money you save by acquiring such a policy makes it all worthwhile.

This type of insurance will cover you during at-fault accidents and ensure you have continuous cover, which could come in handy in the future.

How Long Will a DUI Affect Car Insurance Quotes?

Your auto insurance quotes will increase for at least 3 years after a DUI conviction, but some states will allow this conviction to impact your quotes for several more years. What’s more, you may be prevented from getting a safe driver discount for up to 10 years after a DUI conviction.

Bottom Line: The Light at the End of the Tunnel

A DUI can be a destructive force in your life. It’s a sharp, short shock; a reminder of the dangers of drunk driving and the (justifiably) unforgiving way that the law treats those convicted of this act. But there is good news, because there is light at the end of the tunnel.

Cheap car insurance can’t undo the damage done by fines and jail time; it can’t win back favor with your employees or family members, but it can save you a few hundred dollars a year. And if you keep a clean driving record for several years, you can save even more money further down the line.

Just remember to compare as many car insurance companies as you can and to switch to a new policy as soon as your circumstances improve.

Source: pocketyourdollars.com

Cheap Car Insurance for Seniors: Best Providers and Discounts

  • Car Insurance

Car insurance generally gets cheaper as you age, but it can begin to creep up again once you hit 60, as statistics suggest you’re more likely to be involved in an accident than someone in their 30s and 40s. However, with the right information and the right providers, you can get cheap car insurance beyond the age of 65.

Find your best rate on Car Insurance!

Attention: Still Open During the Financial Crisis…

Tip: Act now to see if you qualify for lower rates!

Compare free personalized quotes from the nation’s top providers.

The Cheapest Insurance Companies for Seniors

The following companies all have cheap senior car insurance policies and should be considered when you apply for a new policy.

Geico

You could be forgiven for thinking that we had some sort of affiliation with Geico. After all, this provider tops many of our lists of the cheapest insurance coverage. But the simple fact is that Geico consistently has the cheapest rates for applicants with clean driving records.

Geico offers something known as a Prime Time contract, which guarantees renewal and offers fantastic rates. It’s available in most (but not all) states, and is offered to drivers who meet the following criteria:

  • Are aged 50 or over
  • Have no drivers below the age of 25 in their household
  • Have been accident-free for at least 3 years
  • Do not use any vehicles for commercial reasons

In addition to consistently cheap rates and senior discounts, Geico offers other driver discounts and benefits, including:

  • Accident forgiveness program
  • Defensive driving course discount
  • Multi-car and multi-policy discount
  • A good driving history for at least 5 years
  • Discount for current and former members of the military

Allstate

A couple of car insurance providers are cheaper than Allstate, but if you can take advantage of their multi-policy discount, known as “bundling”, you’ll make some substantial savings. Allstate also offers the follow car insurance discounts:

  • Discount when you pay in full or autopay
  • Discount for cars that have safety equipment and anti-theft devices (anti-lock brakes, front and side airbags) as well as new cars.
  • Safe driving discounts
  • Multi-policy and multi-car discounts

Progressive

Progressive is one of the cheapest car insurance companies for mature drivers. In addition to a host of discounts, Progressive offers something known as the SnapShot program. This is a type of usage-based insurance. The insurer will install a telematics device in your car to track your mileage and your driving habits, before adjusting your rates based on the information recorded.

If you’re a safe driver and a good driver and/or you don’t spend a lot of time behind the wheel, this could be a great way to get lower rates. Like Allstate, Progressive also reduces rates if you purchase multiple policies with them (such as life insurance and home insurance).

Other Cheap Providers

The Hartford, Farmers Insurance Group, and State Farm are also worth considering and may offer cheaper rates than the insurers above depending on your location and driving habits.

Military veterans should also consider the USAA, as they will nearly always offer the best rates, while occasional drivers should look into Metromile. This insurer offers low mileage discounts for all drivers, but it is not available in all states.

How to Find the Cheapest Insurance Quotes as a Senior

A little research and preparation go a long way and where car insurance is concerned, it could save you hundreds of dollars. Keep these top tips in mind when applying for car insurance as a senior:

1. Compare Auto Insurance Rates

Older drivers are more likely to renew their policies and stay with the same auto insurance companies. But as you age, it’s even more important to keep comparing and to make sure you get the absolute best auto insurance quotes available to you.

Fortunately, it has never been easier to get free quotes and to quickly compare rates from all available providers.

2. Join a Club

Club membership discounts are some of the best ways to save money on your car insurance. For instance, as a member of the AARP, you are entitled to special discounts from The Hartford, and can secure a host of other benefits as well.

3. Think About Your Car

Your vehicle is one of the main things influencing your car insurance premiums. If you drive a car fitted with a host of safety features, you’re less likely to crash and to suffer serious injuries, which means the insurer will reward you with discounts and cheaper rates. You can also get discounts for driving a new car.

At the same time, however, a new car may need collision coverage and comprehensive coverage, and you may be more inclined to set a lower deductible. All these things need to be considered when shopping for a new car and looking to get it insured.

4. Bundle Policies and Cars

If you have several cars and drivers in your household, consider adding them all to the same policy. Your current insurer can discuss this option with you and give you an idea of how much you can save. What’s more, if you’re dealing with one of the bigger providers, you can add several different insurance products together and secure “bundling” discounts.

5. Check all Discounts

Insurers offer a wealth of discounts. Some of these are big, such as military discounts and good driver discounts, but others are small, such as discounts offered for paying in full or setting up autopay. The more of these you get, the more you will save, so ask your insurance agent or provider about all of them and see how much you can save.

Average Cost of Senior Auto Insurance by State

The average senior driver spends between $1,400 and $1,500 on car insurance premiums per year. The state minimum requirements are much less, around $600 per insurance policy, but many senior citizens choose additional coverage options, which bumps the costs up a little.

As we have discussed before, car insurance quotes differ considerably from state to state. For an idea of how much you can expect to pay based on your location, take a look at these averages:

  • Alabama = $1,400
  • Alaska = $1,300
  • Arizona = $1,450
  • Arkansas = $1,450
  • California = $1,850
  • Colorado = $1,600
  • Connecticut = $1,850
  • Delaware = $1,650
  • Florida = $2,300
  • Georgia = $1,300
  • Hawaii = $1,000
  • Idaho = $1,050
  • Illinois = $1,150
  • Indiana = $1,150
  • Iowa = $1,000
  • Kansas = $1,300
  • Kentucky = $1,500
  • Louisiana = $2,500
  • Maine = $850
  • Maryland = $1,700
  • Massachusetts = $1,150
  • Michigan = $2,700
  • Minnesota = $1,200
  • Mississippi = $1,300
  • Missouri = $1,200
  • Montana = $1,500
  • Nebraska = $1,100
  • Nevada = $1,800
  • New Hampshire = $1,200
  • New Jersey = $1,450
  • New Mexico = $1,300
  • New York = $1,750
  • North Carolina = $1,150
  • North Dakota = $1,000
  • Ohio = $950
  • Oklahoma = $1,650
  • Oregon = $1,400
  • Pennsylvania = $1,450
  • Rhode Island =​​​​ $2,300
  • South Carolina = $1,600
  • South Dakota = $1,100
  • Tennessee = $1,200
  • Texas = $1,600
  • Utah = $1,200
  • Vermont = $1,000
  • Virginia = $900
  • Washington = $1,250
  • West Virginia = $1,300
  • Wisconsin = $1,050
  • Wyoming = $1,300

Bottom Line: Best Car Insurance for Seniors

Seniors can be considered a high-risk and if you’re over the age of 75 and have a few blemishes on your record, you may find yourself in this category. However, most drivers won’t face any issue when applying for car insurance and with the right preparation, there’s no reason they can’t save hundreds of dollars on their insurance premiums.

Source: pocketyourdollars.com

Is Cheap Car Insurance Really Worth It?

  • Car Insurance

Everyone wants to save money on their car insurance. The less you pay, the better; lower premiums mean you have more money for the things that matter. The problem is, buying a cheap car insurance policy can be risky and may cost you a lot more in the long run. 

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Price is important but it’s not the only thing that matters here so before you rush off to get the cheapest possible car insurance with the lowest required coverage, you should ask yourself if cheap car insurance is worth the hassle.

What is Cheap Car Insurance?

Cheap car insurance, like a cheap car, is something that covers the bare essentials but leaves a lot to be desired in key areas. For instance, instead of dropping $30,000 on a new car, you could purchase a rundown older vehicle for a few hundred bucks, saving yourself a huge sum of money in the process.

That vehicle will get you from A to B. It’s legal and it may be all you need for your daily commute and occasional visits to the grocery store. But it’s also more likely to break down at the side of the road and leave you stranded; it’s more likely to refuse to start on a winter morning and force you to miss work. And, more importantly, the lack of safety features, when compared to a newer vehicle, means you’re more likely to be involved in a very costly (both physically and financially) accident.

Insurance coverage works in a similar way. You can get the basics and that will cover you for what you need. But what happens if you’re in an accident with an uninsured driver? What happens if you hit a deer or your brand-new car gets vandalized? Your insurance policy may not cover you, and if you have the cheapest possible premiums, it almost certainly won’t.

What is the Cheapest Possible Auto Insurance?

Most states have a minimum requirement for car insurance. In the majority, it covers liability insurance, including bodily injury coverage (per person and per accident) and property damage coverage (per accident). You’ll be required to have these three forms and to meet all other state minimum requirements for you to be legal, and if you don’t, you’re underinsured and may face penalties.

In addition to this liability coverage, there are also several other types of cover, some of which are mandatory, most of which aren’t. If your state allows it, there’s nothing stopping you from sticking with the bare minimum; it could bring your premiums down to less than $500.

The problem is, liability insurance only goes so far.

Liability insurance is designed to cover the other driver and their vehicle, not you. If everyone has this cover, all victims of a road traffic accident will automatically be covered. 

If you’re hit and injured, the other driver’s liability insurance will ensure your vehicle and physical injuries are covered.

But this doesn’t extend to accidents that don’t involve other vehicles, such as when you hit a wall or tree; it doesn’t cover you for weather damage (flood, hail, winds) or animal collisions, and it also won’t cover you if the other driver is uninsured or underinsured.

As a result, by only sticking with the minimum you are rolling the dice, hoping that nothing will happen or that you’ll be able to cover the costs if it does.

What You Need to Consider

When trying to reduce insurance costs as much as possible, you need to ask yourself a few basic questions:

Do I Need Vehicle Cover?

If you have a brand-new car, or even one that is just a few years old, you can’t afford to risk not buying collision coverage or comprehensive coverage. If you’re involved in an accident and not covered by liability insurance, you may lose every cent invested in that vehicle.

It’s akin to walking around with $30,000 in your pocket, because you’re always one mishap or act of criminality away from losing it all and when that happens, there’s nothing that the authorities or your insurers can do about it.

When you have an expensive vehicle, you need to focus less on getting the cheapest car insurance and more on getting the most comprehensive car insurance, including add-ons like New Car Replacement, which is offered by many of the biggest auto insurance companies.

Of course, if you have a cheap vehicle, it’s less of a concern. All insurance costs come with a deductible, which is the money you pay before the insurer takes over. If you’re driving a car that’s worth less than $1,000 and your collision coverage has a $1,000 deductible, it’s pointless. If anything happens, you can just scrap the car and move on.

Do I Need Personal Cover?

Sometimes, health insurance and other forms of insurance will cover you and negate the need for additional options like medical payments cover and personal injury protection (PIP).

These can still be useful to have, especially PIP, as it will compensate you for all lost work while also covering medical costs, but not if it comes with an extortionate price tag that you can’t afford to pay.

What is the Likelihood of Me Needing that Extra Cover?

If you live in an area with a lot of animal collisions and you regularly drive on roads with lots of deer, it makes sense to consider comprehensive coverage. The same applies if you live in an area prone to flooding, theft, vandalism, and hurricanes.

The fact you live in such an area will increase your car insurance premiums, but it will also make that cover essential.

Can I Get Discounts?

Car insurance discounts can reduce your monthly premiums significantly and make all additional coverage options more affordable. For instance, installing certain anti-theft devices or buying a car with specific safety features can secure substantial savings on a full coverage policy. Being a good driver with a safe driving record will also help, as will getting good grades as a student and reducing the mileage. 

The biggest insurers (GEICO, State Farm, Allstate, Progressive) weigh your risk on a per mile basis, and if you do fewer miles, you automatically reduce that risk.

Do I Need Optional Extras?

Car insurance providers will try to sell you optional extras like roadside assistance, sound system insurance, and whatever else they have available, but very few of these options are necessary and, in most cases, you’re insured elsewhere.

Roadside assistance, for instance, is provided as standard on many premium credit cards, and your belongings may be covered by your home insurance. We would recommend looking into ridesharing insurance if you drive for Uber or Lyft, and New Car Replacement if you have a brand-new vehicle, but beyond that, you can stick with the main types of cover.

Bottom Line: Is Cheap Auto Insurance Worth it?

Applying for affordable car insurance comes down to lower rates vs adequate car insurance cover. The latter should always be your main focus and you should never compromise, but once you get the cover that you need for your location and your car, you can trim the edges, save yourself a few bucks, and get a cheap policy all round.

Source: pocketyourdollars.com

Cheap Car Insurance for College Students

  • Car Insurance

Surviving as a college student is about living cheaply, saving money everywhere you can, and fleecing as much money from your parents as humanly possible. But at times, this is easier said than done, especially when it feels like the world is against you and you’re being charged the highest prices even though you have the least money.

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Car insurance is a perfect example of this. College students are hardly known for having a lot of disposal income, yet car insurance companies quote them significantly higher rates than any other demographic. So, what can you do, how can you save?

Average Cost of Car Insurance by Age

Your insurance rates are determined by a multitude of factors, all of which are used by the underwriters to predict the likelihood that you will make a claim. The more likely you are according to the statistics at the underwriter’s disposal, the higher your insurance premiums will be.

Students are at a disadvantage from the outset, as young drivers and first-time drivers will pay considerably more than drivers with age and experience on their side. According to the national averages, you can expect to pay approximately the following amounts for each age:

  • Age 17: Average Cost of Minimum State Insurance = $2,200; Average Cost of 100/300/100 Liability Insurance = $5,800.
  • Age 18: Average Cost of Minimum State Insurance = $1,900; Average Cost of 100/300/100 Liability Insurance = $5,100.
  • Age 19: Average Cost of Minimum State Insurance = $1,300; Average Cost of 100/300/100 Liability Insurance = $3,500.
  • Age 20: Average Cost of Minimum State Insurance = $1,100; Average Cost of 100/300/100 Liability Insurance = $3,200.
  • Age 21: Average Cost of Minimum State Insurance = $900; Average Cost of 100/300/100 Liability Insurance = $2,500.
  • Age 22: Average Cost of Minimum State Insurance = $800; Average Cost of 100/300/100 Liability Insurance = $2,300.
  • Age 23: Average Cost of Minimum State Insurance = $750; Average Cost of 100/300/100 Liability Insurance = $2,100.
  • Age 24: Average Cost of Minimum State Insurance = $700; Average Cost of 100/300/100 Liability Insurance = $2,000.
  • Age 25: Average Cost of Minimum State Insurance = $600; Average Cost of 100/300/100 Liability Insurance = $1,750.

For comparison sake, the average cost for all car insurance policies in the United States is just over $1,000. This gives you an idea of just how much more money young drivers are expected to pay.

Main Car Insurance Discounts for Students

There are two types of car insurance discounts aimed specifically at students.

The first, and the best known, is the good student discount. Offering an average saving of 25%, this discount applies to all student drivers who maintain good grades throughout the life of their policy. Generally, those grades need to be at least a B average, but the specifics will depend on your state and insurer.

The second is known as a student away or full-time student discount. This can go much higher, often to between 40% and 50%, but it is only available to students who live on campus and, therefore, spend very little time at home and behind the wheel.

Other Discounts Offered to Students

Many of the driver discounts offered to adults and experienced drivers are also available to student drivers and are a great way to bring those rates down. These discounts include:

  • Multi-Policy and Multi-Car Discount: A multi-car discount is provided to policyholders who add multiple cars to the same policy. If you’re buying an auto insurance policy for your child, consider adding them to your policy and you can benefit from this discount. Adding a child to a parents’ policy will generally cost a lot less than getting them their own policy.
  • Good Driver Discount: A student doesn’t have a driving record until they get their driver’s license and climb behind the wheel for the first time. But that doesn’t mean they can’t work towards the goal of getting a clean and safe driving record. This will allow them to make bigger savings in the future.
  • Driving Training Discount: Driver safety courses and defensive driving courses are a great way for drivers of all ages to secure cheaper car insurance quotes. It’s proof that you’re a good driver, have the skills needed to stay safe, and are committed to improving yourself.
  • Mileage Discount: Some insurers will give you a discount if you allow them to track your driving habits and use the information gathered to tweak your rates. You can also get insurance coverage that charges by the mile.

The Cheapest Auto Insurance Companies for Students

The more policies you compare, the more likely you are to get the best car insurance cover and the lowest possible cost. Most insurers will cover you as a student, but some are better than others and to help you get started, we have listed some of the very best:

State Farm

Based on the number of policyholders and combined claims, State Farm is the largest car insurance company in the United States. It also spans all fifty states and along with a 25% good student discount, it offers teen driving programs and driver safety training.

Allstate

Allstate has a higher good student discount than most, offering a saving of 35% to all qualifying applicants. Its student car insurance rates are reduced further by the addition of a 5% student away discount, as well as generally low rates.

GEICO

GEICO is consistently ranked as one of the cheapest and best car insurance companies in the United States, and it’s easy to see why. GEICO’s good driver discount may be capped at 15%, but when the base rates are already low, big discounts aren’t necessary. 

In our research on national averages, GEICO consistently came out on top for the cheapest car insurance premiums when looking at minimum liability coverage and fully comprehensive coverage.

Progressive

Students going through Progressive can save up to 20% more on their car insurance, with 10% for maintaining good grades and 10% for studying away. It also offers driver course discounts and other unique ways to save.

Bottom Line

In the list above, we covered just a handful of the cheapest providers for students. You should also look into the likes of Liberty Mutual, American Family, and, if you qualify, the USAA. These insurance providers may offer you cheaper rates, they may not, but the differences from state to state and user to user can be huge, so you won’t know until you try them and get those quotes.

Metromile and other usage-based car insurers also offer very cheap car insurance, but only if you barely use your car.

Source: pocketyourdollars.com

Cheap Car Insurance for Newly Weds

  • Car Insurance

Of all the things that can affect your car insurance rates, getting married is, perhaps, one of the most surprising. In this guide, we’ll look at the reasons why newlyweds are likely to pay less for their car insurance policies than single drivers, while also showing you some of the ways you and your new spouse can save money on the best car insurance coverage.

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Why Does Getting Married Reduce Your Insurance Rates?

There are two reasons you can get cheaper car insurance rates when you tie the knot.

The first is the most obvious: There are now two of you. By offering cheaper rates to married couples, insurers know they’re getting two for the price of one. They want you to combine policies and they also know that married couples are more financially responsible and more likely to need other insurance products.

Secondly, as with everything else that can impact insurance rates, married drivers are less likely to claim than unmarried drivers.

It’s reasonable to suggest that married people are more likely to practice caution behind the wheel, as they have more to lose and are no longer living the free and single life. But that’s not the only thing at play here. 

This statistic may also have something to do with the fact that responsible drivers are more aware of the damage that a single claim can do to their driving record, and may, therefore, be less willing to claim for small dings and fender benders.

Whatever the reason behind this statistic, it doesn’t really matter. All the insurance company cares about is that married drivers claim less and can, therefore, be offered lower rates.

What Newly Weds Need to Consider

Once you tie the knot, enjoy your honeymoon, and open all those wedding gifts, it’s time to get down to business and start making the changes needed for your new life together.

When it comes to car insurance, you need to consider all the following factors:

Should You Combine Policies?

If your spouse has a bad driving record you might be tempted to get separate policies and to keep their record as far away from you as possible.

However, most insurers will consider your spouse’s record even if you’re not combining your policies. This, combined with the fact that many insurers offer multi-vehicle discounts, means it’s nearly always better to combine policies.

Do You Have Enough Coverage?

Many customers will stick with the state minimum requirements for car insurance, but those requirements are very limited, but in financial coverage and scope. 

To get complete cover, you should look into higher liability coverage options as well as additional coverage such as collision, comprehensive, and more.

What Can You Afford?

Affordability is key with any new purchase but determining your affordability isn’t as simple as seeing how much money you have left every month and then deducting your projected auto insurance rates.

Affordability also stretches to the types of coverage you choose. For instance, if you have a new car but don’t have much left in your budget, you may be tempted to opt for the most basic liability coverage.

But can you really afford to take such a risk? After all, liability coverage only applies to the other driver, and if you hit a wall, tree or an uninsured driver, you could lose everything you have invested in that car.

Other Ways to Get Cheaper Car Insurance Quotes

The average wedding in the United States costs over $30,000. Getting married just to save a few bucks on your car insurance premiums is akin to buying single malt whiskey just so you can sell the empty bottles. 

You will also save on your premiums if you are a homeowner, as research suggests that homeowners are more reliable than renters. Again, you’re not going to buy a house just to save on your car insurance, but if marriage and a move are already in the pipeline or you have just tied the knot, those cheaper premiums are an added benefit.

What’s more, by implementing a few other simple strategies and making some minor changes, newlyweds and long-term married couples can save even more on their auto insurance:

Add Multiple Cars and Policies

Most auto insurance companies offer a multi-car discount, whereby policyholders can save money by adding all their household cars to the same policy.

If you have more than one car, add them all and your insurer will give you a sizeable discount.

It’s not just cars, either, as insurers will also offer you discounts when you combine different types of insurance coverage and insurance policies into one. For instance, all of the big insurance companies (GEICO, Esurance, State Farm) will give you a discount if you purchase home insurance and car insurance. 

Often referred to as “bundling” or a “multi-policy discount”, this is essentially the insurer’s way of convincing you to purchase more products. You’ll also benefit from having car insurance, homeowners insurance, and other forms of insurance with the same company, as it will be easier to claim when the time comes.

Improve Credit Scores

If both you and your partner have a good credit score,  your chances of getting cheap car insurance will increase considerably.

Credit scores play a very important role in determining your car insurance rates, as research suggests that good credit drivers are less likely to be involved in an accident and to commit traffic violations.

Of course, improving your credit score is easier said than done and if you have two credit scores to improve, you’ll have a lot of work on your hands. But simply paying your bills every month while paying off as much debt as you can, increasing credit limits, and avoiding hard inquiries, will do the job.

Pay Upfront

Most car insurance companies will give you a discount if you pay for your premiums upfront. That’s a lot of money to spend in one go and many policyholders will deem the discount (often just a couple of percent) to be too low. But it all adds up, and once you combine this discount with all the others, your premiums will be a fraction of what they were.

If you’re not going to pay for everything upfront, at least consider going paperless as this can have just as much of an impact. You will also be doing your bit to reduce waste, and there is no need for paper bills and invoices in this day and age.

Clean Driving Record

Insurers want drivers with clean records and a spotless driving history. Such drivers are less likely to be involved in an accident and to make a claim. There is still a risk, of course, but by driving responsibly, staying within the speed limit, and avoiding all tickets, you can get the very best rates in the future.

Consider More Insurable Cars

New cars may cost more to insure than used cars; sports cars will always cost more than SUVs. These are just two key facts to understand when shopping for cars.

The difference between a highly insurable vehicle and a high-risk one could be over $1,000 depending on other factors, so it’s very important to keep these things in mind.

What’s more, with a new car you will typically need more coverage, especially if it’s financed. You’ll need options such as collision coverage, comprehensive coverage, uninsured/underinsured motorist coverage, and even new car replacement benefits. You may also want to consider low deductibles.

With an older and cheaper car, none of these insurance options are necessary. You can take more risks because you stand to lose a lot less if anything happens to your vehicle.

Collect All Discounts

Car insurance discounts are offered to all applicable drivers and can be accessed even if you have a bad driving record. Discounts are also available with all insurance providers, although the types of discounts they offer can differ considerably from one insurance carrier to the next.

With many, you’ll get a discount if your car has safety features and anti-theft devices (airbags, anti-lock brakes, alarms, trackers) as well as good student and good driver discounts. With some, you can also get discounts if you’re in the military or are a member of the AARP. 

Car insurance discounts are all about rewarding you for the things that reduce risk and encourage you to make changes that benefit the insurance companies.

Bottom Line: The Cheapest Auto Policies for Married Couples

The final and most important step in getting the cheapest car insurance as a married couple is to compare as many quotes as you can. 

Get free insurance quotes online, speak with insurance agents, tweak deductibles and coverage options, and only settle when you have found the perfect range of coverage for the best possible price. It takes a little extra time and effort, but it’ll all be worth it in the end when you’ve saved hundreds of dollars and haven’t forced yourself to make risky sacrifices.

Source: pocketyourdollars.com

Getting Cheap Car Insurance After Divorce

  • Car Insurance

A divorce is one of the most traumatic things you can go through and the longer you have been with that person, the more traumatic it will be. When you share your life with someone for many years, it’s only natural that you’ll feel a sense of loss and uncertainty when they go. 

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You need to make some big changes to your everyday life, such as severing all financial ties with your ex, car insurance included. In this guide, we’ll provide you with some top tips for separating your car insurance policy following a divorce, helping you find the cheapest rates as a divorced driver.

Will Insurance Rates Increase Following a Divorce?

Car insurance companies offer cheaper rates to married homeowners. They also provide additional discounts if those policyholders purchase home insurance or renters insurance along with their car insurance.

Following a divorce, not only will your marital status change, but you may also lose those bundling discounts.

Fortunately, there are ways that you can avoid paying high premiums after a split, including:

1. Stay on the Same Policy

If the separation was amicable, consider maintaining the same policy. Turning one policy into two will see you lose several key benefits and could mean much higher premiums for both of you. It’s much better, therefore, to stick with one policy.

Such an agreement probably isn’t possible if the split was hostile, in which case you have no other choice but to get separate policies.

2. Move to a Different Area

The cost of car insurance coverage differs greatly from state to state and even county to county. Your zip code has more of an impact on your rates than your marital status, and if you move from a state like Michigan to one like Maine or Vermont, you will experience a considerable drop in your insurance premiums.

Insurance companies look at the prevalence of weather damage, vandalism, thefts, car accidents, and more in your area, before using this data to determine your risk factor.

3. Get a Different Car

The stereotype of the divorced man is one of someone who immediately sells the family SUV and instead opts for a luxury sports car. This is a bad idea for many reasons.

Firstly, making an impractical choice like this will probably come back to bite you a few months down the line, when the gas bills hit your pocket hard and you realize you don’t have space for your kids, luggage or anything else.

Secondly, you’ll be hit with much higher car insurance rates. Underwriters look at safety ratings, anti-theft devices, safety features, and the cost of repairs, and in nearly all cases, a sensible and practical SUV will score much higher than a luxury sports car.

In some cases, you’ll pay two to three times as much to insure a luxury car, so if you want to save, opt for something a little more sensible.

4. Shop Smart

The best car insurance policy isn’t the one you have right now. There are always better options, and this is especially true when you go through a major change like a divorce.

Your insurance company may offer you competitive rates on a new policy, but you won’t know how good those rates actually are until you shop around and see what you can get elsewhere.

In our research, we got insurance quotes from over 20 providers and found a difference of 150% between the cheapest and the most expensive. All insurance providers were reputable, established brands and all quoted us a price for a middle-aged divorced male driver. 

You may get different quotes elsewhere based on your location, driving record, and vehicle, but you’ll likely experience just as much disparity.

Shop around, get as many quotes as possible, speak with insurance agents, and don’t settle until you get a price you’re sure is the cheapest.

5. Get Discounts

If you haven’t renewed your auto insurance policy in a while, you may be entitled to more discounts. This is especially true if you go with an insurer that offers options not available with your previous provider.

Car insurance discounts vary and you may not qualify for all of them, but it’s worth looking into them:

  • Good Student Discount: Not a discount that you or your former spouse will likely qualify for, but a substantial one, nonetheless. Often available to teen drivers, this discount is offered to policyholders who maintain a high grade point average.
  • Defensive Driving Course: Many providers and states offer these discounts to older and younger drivers, but only if they are taking these courses voluntarily.
  • Multi-Car Discount: If you have several cars, you can add them to the same policy to save.
  • Good Driver Discount: Maintain a clean, safe driving record to secure this discount.
  • Membership Clubs: If you are a member of an auto club you may be entitled to a small discount on your car insurance premiums.
  • Payment Discounts: Pay for your auto policy upfront or go paperless and you could receive a small discount.

Don’t Forget Other Insurance Policies

Even if one or both of you live in the same house as before, you will still need to inform your insurance company about the recent change in circumstances. When the divorce has been finalized and two turns into one, the policy may need to be redrafted entirely.

Not changing this policy could render it invalid when it comes time to make a claim, so it’s always worth keeping your insurance carrier in the loop.

As for life insurance, there’s a good chance your ex-spouse was listed as one of the beneficiaries, if not the sole beneficiary. Many divorced couples will immediately write their ex out of the policy, but this isn’t always the best thing to do.

If you have young children with your former partner, you should consider keeping your spouse as a beneficiary. By acting out of anger and removing them from the list of beneficiaries, you run the risk of there being no legal heirs at all. If this is the case and you die before adding another legitimate beneficiary, the money will go to your estate and a legal battle will ensue as your loved ones try to seize control.

Your children will still get the money eventually, but only after fighting for their share with other family members and debtors. 

If a death benefit is paid to your estate, all your creditors will be entitled to their share, and if you have a lot of debts, there may be nothing left by the time your children get their hands on it. 

Think about your kids before you act to spite your ex-husband or wife.

Bottom Line: Save Where Possible

One of the best things you can do following a divorce is to tighten your belt, try to think sensibly and logically, and don’t make any rash decisions.

There could be some expensive times ahead. You may be required to pay legal fees, child support, and alimony; you may lose time off work while gaining a whole heap of stress. The last thing you want on top of this is an expensive car insurance policy.

Buy the right cars, keep all insurance costs down, avoid spending frivolously, and continue to work on building a safe driving history. 

The decisions you make now could impact your finances for years to come, so plan carefully, execute sensibly, and don’t act on impulse.

Source: pocketyourdollars.com