Find out if you're overpaying for car insurance by comparing more than 20. A NerdWallet analysis found that having poor credit can increase people's car insurance rates by hundreds of dollars a year compared to having good credit. In most situations, a FICO score of 579 or lower is considered “bad credit,” but insurers have their own credit models that may have a different limit. We examined the rates for men and women in their 40s for all zip codes in any of the 50 states and in Washington, D.C.
Although it is one of the largest insurers in the country, Liberty Mutual is not included in our rate analysis due to the lack of publicly available information. Property and accident insurance services are offered through NerdWallet Insurance Services, Inc. OK9203 Property & Casualty Licenses. If you haven't had an accident or even a fine in years, you might get a better rate.
If you're a student and have good grades, it's worth making a discount. In some cases, taking a safe driving course can also reduce what you pay. To reduce your insurance premiums after a DUI, you might consider eliminating unnecessary coverages, taking a defensive driving course, or enrolling in a usage-based insurance program. That's not always the case with car insurance, and even if your insurer has a grace period, it's often much shorter than other types of insurance.
You can't expect auto insurance companies to automatically apply all the discounts and adjustments you might be eligible for to your policy. Usage-based insurance, or UBI, is a type of car insurance that tracks your driving behavior to help determine your car insurance premium. Your insurance credit rating is an important factor in the car insurance quotes you receive, except in a few states. California, Hawaii, Massachusetts and Michigan don't allow insurers to use credit to determine auto insurance rates.
If the car is only worth a few hundred dollars, it probably doesn't make sense to have collision insurance. You may be able to reduce your car insurance by looking up prices and comparing quotes several times a year. If you prefer to review insurance options with someone, working with an auto insurance agent is another way to do that. The car insurance company that is cheapest for a person in one place could be the most expensive option for a driver in another state.
A NerdWallet analysis of the cheapest cars to insure among the best-selling vehicles revealed that the lowest insurance rates are for the Subaru Outback, the Jeep Wrangler and the Honda CR-V. But what if you don't have a car loan and your car is 15 years old? You should check your book value online. Consider asking for auto insurance quotes not only from national auto insurance companies, such as Geico and Allstate, but also from smaller insurers, since you never know where the best deals might be hidden. You probably already pay attention to factors such as fuel efficiency and repair costs when choosing a car to buy, but you should also consider insurance premiums.