When searching for car insurance, always ask yourself whether you’re paying more than you should. Car insurance costs vary by company, driver, car and city. Research your situation to ensure you get the best coverage. As a 20-year-old, getting cheap car insurance can be challenging due to various factors, but it’s possible.
Follow these eleven tips on how to get cheap car insurance for 20 year olds:
1. Shorten Your Commute
Driving less is a simple way of lowering your auto insurance costs. By driving to and from work, you will likely be charged higher rates than if you drove for leisure purposes only. To drive less, you could carpool, make use of rapid transit if you reside in a large city, or park your vehicle at a bus stop and take a bus for the remaining part of the journey.
This will also mean less wear and tear on your vehicle. The usage will be changed from commuting to pleasure, which means fewer kilometres and lower rates.
2. Maintain a Clean Driving Record
In general, driving safely is the best way on how to get cheap car insurance for 20 year olds. If you get a distracted driving/speeding ticket and believe you’re not at fault, make sure you dispute it through the court system. Photo radar and parking tickets aren’t counted against your driving record. By driving responsibly, you can save money on auto insurance.
3. Invest In Winter Tires
In some provinces, winter tires are mandatory. For those who aren’t required to install winter tires, investing in them is still something to consider. Some insurers offer discounts for cars with winter tires. Do your research to find out whether the initial cost will be worth the savings.
4. Volunteer to Use a Tracking Device
Today, car insurance companies are offering tracking devices, which track driving behaviour and reward good driving habits. This device is installed in a car and monitors braking, speeding, and when a vehicle is driven and the frequency. The better your driving habits, the cheaper the car insurance rates.
5. Increase the Length of Your Driving Record
Your driving record has a great impact on how cheap or expensive your car insurance rates will be. A longer driving record gives you a higher chance of getting cheaper car insurance rates. A 45-year-old driver with 20 years driving experience is likely to get a lower rate compared to a 20-year-old with 5 years’ experience.
If you go to school during fall/winter or live with your parents, consider being added to your parents’ policy as a secondary driver. Years of being a secondary driver generally count as years of driving experience. When you graduate from school and get your policy, you’ll have extra years of experience, and qualify for cheaper car insurance rates.
6. Get a House and Car Insurance Bundle
Combining your home/tenant insurance policy with your car insurance policy will qualify you for a ‘bundle’ discount. This is an easy way to save money and consolidate payments.
7. Park At Home
You can get cheaper car insurance by parking your vehicle at home, in a private driveway or garage, instead of parking it on the street. This is because a car parked on the street is more likely to be vandalized/ stolen than one parked at home. Using an anti-theft device may also get you lower rates.
8. Pick the Right Car
When purchasing a vehicle, a majority of people fail to consider the cost of insurance, but they should. Insurance costs vary among different vehicles. When choosing a car, make sure you understand its insurance costs. Generally, expensive cars and new vehicles cost more to insure. Modifications to increase horsepower and visual appeal, sports editions and luxury models may also result in higher insurance rates.
Get a quote for the insurance and factor it into the total cost. Buying a reasonably priced used vehicle keeps your insurance costs down.
9. Increase Your Deductible
A car insurance deductible is basically how much you are required to pay before the insurance company takes over. If you get into an accident that costs you $1,500, and you have a deductible of $500, you’ll be asked to pay $500 first, and then your car insurance will handle the remaining $1,000. If your deductible is low, consider increasing it. In general, the lower your deductible, the higher the insurance costs.
10. Take the Driving Course
If you’re a new driver, consider enrolling in a driver-training course. There are insurance companies that offer discounts for new drivers after completing the driving training course.
11. Only Pay for the Coverage You Need
If you do not require high liability coverage, consider having it lowered to bring down the overall car insurance costs. In some policies, windshield coverage is included, but you may not need it. Declining it will lower your rates. Paying out-of-pocket is sometimes cheaper than the deductible you will be required to pay by the insurance company. Avoid paying for coverage you don’t need to keep insurance costs down.
You can compare car insurance rates online to find the most reasonable price.