How Can a Guy Get a Good Car Insurance Policy Without Paying Too Much?

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It can often seem as if you’re trapped in a car insurance nightmare. Premiums are high, and they get even higher as the years pass, causing a deep sense of helplessness. But rest assured, you’re anything but helpless! While it’s true that car insurance rates are higher in some states than in others, there are always options available to help you get a good car insurance policy without paying too much.

Here’s what’s worked for me in the past…

Drive Like a Man – Responsibly

We’ve got to own this, guys – car insurance premiums are higher for men than they are for women. At least they are for younger men. According to the insurance website, The Zebra, premiums average 14% higher for men than for women under age 24. After that, they roughly even out.

But if you’re over 24, it’s time to man-up and drive responsibly. Every ticket you get for a moving violation or accident you’re involved in that’s determined to be your fault will increase your premiums, often dramatically. The single best strategy you can employ to keep your car insurance premiums down is to keep your driving record clean.

And for goodness sake, don’t drink and drive – there’s absolutely no need for that in that in the Uber Age.

Not only will you save money on car insurance premiums, but also on traffic citations and deductibles for at-fault accidents.

If you have moving violations and/or at-fault accidents already on your record, you may be able to get your premiums lowered by taking a safe driver course. Check with your insurance carrier to see if they offer this benefit, and if so, what the approved courses are.

In most states, moving violations and at-fault accidents will fall off your driving record in three years.

Stay on Top of Your Credit

You may not think your credit has much to do with your car insurance premiums, but it does in most states. According to Insure.com, a person with bad credit pays an average of 71% more in car insurance premiums than someone with good credit. That’s just the nationwide average. It can be much higher in some states.

Whether we like it or not, car insurance companies have determined there’s a connection between bad credit and filing car insurance claims. It could be that someone with bad credit may be preoccupied with their financial difficulties, and more likely to be involved in accidents.

Whatever the reason, your credit is something that’s within your control. Work to improve it, and you may see your car insurance premiums fall.

Choose Your Vehicle with Insurance in Mind

It stands to reason that certain cars cost more to insure. Near the top of the list are sports cars. Not only are they more likely to encourage reckless driving, but they don’t always have the best safety features. It should also be obvious that the more expensive your vehicle is, the higher your car insurance premium will be.

If you’re facing a decision to buy a new car, check with your insurance company to see what the premium on that car will be. This will be even more important if buying the new car itself will be a tight fit in your budget. If it is, the higher car insurance premium may tip the scales against you. You don’t want to be making a car buying decision based heavily on your insurance premium, but you shouldn’t ignore it either.

In addition, if you’re buying a new car, be aware of the safety features it includes. Features like antilock brakes, airbags, and automatic seatbelts can lower your premium, at least a bit.

Get No Less – and No More – Coverage than You Need

Each state has its own minimum car insurance coverage requirements. Those are usually shown in a three-number sequence that looks like this: 25/50/25. The three numbers represent the liability coverage requirements in the following categories:

Bodily injury for one individual ($25,000)
Bodily injury for all parties injured in an accident ($50,000)
Property damage ($25,000)

It’s important to remember that the state requirements are only the legal minimums. But if you have significant assets you should get higher liability coverage. Most insurance companies will go up to 100/300/100, or something similar.

Should you get the maximum? It really depends on your financial situation.

If you don’t have substantial assets, you can get by with the minimum coverage. But if you do have big assets, like substantial home equity, bank accounts, and taxable investment accounts, you should go toward the higher limits.

But don’t get carried away either. If you estimate your net worth at $100,000, you probably don’t need $300,000 in liability coverage. Get no more, and no less car insurance than you need. It will have an effect on the premium.

A Higher Deductible = Lower Premiums

If you have collision and comprehensive coverage, which you certainly will if you have a loan on your car (your lender will require it), you’ll have the option to choose the deductible for each. That’s the amount you’ll have to pay out-of-pocket for an at-fault accident. More than anything, it’s a way of lowering the collision and comprehensive portion of your premium.

Most drivers go with a $500 deductible. It’s become something of a convention, probably because it’s an amount most people can easily afford to pay on short notice.

But you can save quite a bit on your car insurance premium by increasing your deductible to $1,000, likely by at least 10% (or more on higher-priced vehicles).

Here’s a trick you can use to cover the higher deductible: set up an emergency fund with at least $1,000 in it. If you already have an emergency fund, increase the balance by $500. That will give you the extra cash you’ll need to cover the higher deductible if you’re involved in an-at fault accident.

Shop, Shop, Shop!

Never, ever, make the assumption all car insurance companies charge roughly the same amount. At the same time, never get too comfortable with your current car insurance company.

First, the differences in premiums for an equivalent amount of coverage can be substantial from one company to another. Second, insurance companies are constantly re-evaluating their risk experience in each state. Some companies find they’re experiencing higher claims, and increase their premiums. But others see lower claims, and price their policies more aggressively.

It’s an ever-changing cycle, and you can use it to your advantage. Plan to shop for a new insurance carrier every two or three years. You may be surprised to find lower-cost providers – even some that weren’t so inexpensive in the past.

Get quotes from three or four of the best car insurance companies. If you have a motorcycle, get multiple quotes from the best motorcycle insurance companies.

When you’re shopping for a new policy, make sure the companies you’re getting quotes from are giving you prices on coverage that’s identical to what you have now. A quote that eliminates or lowers a certain provision in your existing policy won’t be cheaper in a real sense. It’s about comparing apples-to-apples.

But never be afraid to shop for car insurance. If you find an identical policy that’s cheaper with another company, you’ll save some money. And if you don’t, all you’ll have lost was some time.

Go for Every Discount You Can Get

There are literally dozens of discounts available with car insurance policies. Examples include:

As mentioned earlier, certain safety equipment
Bundling your car insurance with other policies, like homeowner’s or renter’s insurance
Multiple cars on the same policy
Customer loyalty – most companies will give you discounts if you’ve been with them for a few years
Also as mentioned earlier, completing a defensive driving course
Low mileage driving, particularly if you have a short commute to and from work
Good student discounts

This is just a shortlist of the possible discounts available. Ask your insurance provider, or any you’re applying with, to provide you with a complete list of all the discounts they offer. You’ll be surprised at how much two or three discounts can save you on your premiums.

Final Thoughts on Getting a Good Car Insurance Policy Without Paying Too Much

You may be legally required to have car insurance, but you have every right to get the best policy for the lowest possible premium. Use the strategies above, and you should be able to cut your premium by several hundred dollars per year.

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