When you're a teenager or a young adult, you might be balancing school and work and attempting to stretch each dollar. If you're finding that you could use an extra bit of money in your pocket at the end of the month, it's often possible to take steps to reduce the rate that you pay for your auto insurance. While consistently being safe on the roads – avoiding accidents and obeying the rules of the road – can help you avoid a rate increase that affects your personal finances, these three strategies can make you eligible for a rate drop right away.
Improve Your Academic Standing
If your grades at high school or college aren't quite up to par, spending time hitting the books can translate into success in the classroom – and a drop in your auto insurance premium. Insurance companies will reward good students with better insurance rates; the premise is that students who excel in school are often more responsible, which translates into responsibility while behind the wheel, too. Provided you can maintain at least a "B" average or a 3.0 GPA, you could save at least 15 percent on your insurance rate and potentially as much as 25 percent, depending on your provider's policies.
Find A Different Commuting Method
If you're living off your school's campus, you might find yourself spending considerable time commuting each day – and it could be costing you financially. If it's possible to find a different way to travel to school, such as taking a bus or riding the subway, you'll be using your personal vehicle less, which can prompt your insurance provider to reduce your rate. Each company has a different policy concerning low-mileage discounts, but you can often expect to save as much as 40 percent off your insurance premium simply by driving your vehicle less frequently. To be eligible for this discount, you typically need to keep your driving to a maximum of 7,500 to 15,000 miles per year, depending on your provider.
Drop Your Collision Coverage
Often, young drivers will find themselves driving low-value vehicles until they can afford to upgrade. If you're in this situation, talking your insurance agent about your coverage can be beneficial. You can often reduce your insurance rate by getting rid of your collision coverage – the premise is that if your vehicle has little value, there's no point in paying what can often be a hefty deductible. The exact percentage that you can expect to save depends on several factors, including your vehicle's value.
Contact a business like Holt Insurance Services for more help.