How to Get Some of the Best Car Insurance Rates

When it comes to getting great rates for car insurance, there are quite a few factors at play. We all want to save money, wherever we can, and car insurance is no different. So what are some of the determining factors we should keep in mind when choosing car insurance? That’s a great question and one we want to answer to help you get the best car insurance rates and save some money.

Type of Vehicle

While we wouldn’t think the type of vehicle we choose to drive would have a huge impact on insurance, it does. This is especially true of the higher end luxury cars.

When it comes to driving a luxury car, the repair and replacement costs are much higher than your typical sedan. Some examples of these sorts of vehicles are:

  • Audi
  • BMW
  • Bugatti
  • Corvette
  • Lexus
  • Mercedes
  • Porsche
  • Tesla

If you choose to drive one of these, you know that your car insurance rate will be higher. And sometimes that is still worth it for us.

But, if you choose to drive a mid-range sedan, or a hybrid sedan, your car insurance rates will be much lower. Some of these potential cars include:

  • Honda Accord
  • Mazda 6
  • Nissan Altima
  • Toyota Camry
  • Toyota Prius
  • Volkswagen Jetta
  • Volkswagen Passat

While these are all fantastic cars, and extremely reliable, if you have a larger brood they may not do the trick. So, if you end up getting a mini-van or an SUV, your rates will usually fall somewhere in between the two aforementioned classes.

RELATED: Buying a New Car? 5 Areas Your Mechanic Should Check Beforehand

Vehicle Year

Next up on the list is the vehicle year. This is an important factor because the newer a car is, the more expensive it is to replace when a total loss happens. Usually, the parts are a bit higher priced also.

But, if you have a car that is 5-10 years old, your car insurance rates can drop dramatically. This is due to the replacement cost being much lower. And the repair parts have been in circulation long enough to help reduce their cost.

And if you choose to drive a much older car that is paid off completely, you have the possibility of getting much lower insurance. This is due to the fact that you have the option of only carrying liability insurance instead of full coverage, and that can save you a bundle.

But, what that means is that if you get into an accident, your insurance will cover the other people’s vehicles but not yours. So you have to be willing to take the risk monetarily.

Driving History

While you may wonder what your driving history has to do with insurance, it’s another huge factor. Even though you might have been pulled for speeding, running a red light or a stop sign, that didn’t affect the functionality of your car. Right?

That’s true, it didn’t. But, to the insurance companies it means you are a higher risk of causing an accident. And even though a lot of us rarely end up needing to use our car insurance, but pay into every month, insurance is a business. And they like to mitigate their risks. Which means if they consider a driver higher risk, then they have to charge them higher rates to offset the possibility of having to pay out on a claim. Even if we don’t like it, this just makes smart business sense.

So keep close tabs on your driving record and do your best to be a smart driver. When you are, it can help put money back into your pocket.

Credit Score

This is another category that might have some of you scratching your heads. But your credit score is even important when it comes to the insurance category. As silly as that may sound!

What your credit score says about you is your reliability. And all businesses, including insurance companies, want to know that you are reliable. Where this is important is regarding making your insurance premium payment, in full and on time.

If your credit score is lower, or sub-optimal, it will raise a flag to the insurance company that you may have issues paying. And no company wants to deal with that because it affects their bottom line. So, to help get better rates, keep your credit score above a 650. If you want the best rates available, above a 720 is where you want to be. So running a check on your credit score ahead of time to know where you stand, can only help you in the long run.

I know that we check ours monthly using Credit Sesame. This app has been a great help to us with regard to knowing exactly where we stand and what areas we can work on.

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Bundling Products

We all know that a lot of internet and phone companies like to bundle to help save you money. Well insurance carriers are no different in that respect. While not all insurance carriers will carry all of the insurance products you may need, they usually carry at least 2. Some of the other insurance products you may want to consider bundling are:

If you already have one of these insurance products, then it makes sense to reach out to your current carrier first. I would ask what their rates are for you and see if they offer a bundling discount. Just remember that not all insurance carriers are the same and specialize in different areas.

I know, for us, we have our homeowner’s insurance, life insurance and car insurance all bundled and it has really helped us save some dough in the insurance category!

Best Car Insurance Rates Recap

Overall, there are a lot of different factors that affect potential car insurance rates. When you are shopping around, it is best to keep in mind:

  • the type of vehicle you choose
  • year of the vehicle
  • your driving history
  • credit score
  • bundling insurance products

Once you have looked at all of the pieces of the insurance puzzle, then it’s time to choose the best product for you. Doing your due diligence first can only help you get the best car insurance rate and save the most amount of money.

What are some of the best ways you have found to get the best insurance rates for you?