5 quick tips for new graduates to save money on it

You're a recent graduate looking to save money on car insurance? Don't you know what best ways are? Check out our post to have an insight into this.

After graduating from your college with good results and have a stable job, you may want to reward yourself. With an amount of money, you may decide to purchase a car. Accordingly, the car insurance is also essential and worth noticing.


In fact, car insurance may protect drivers and passengers from incurring the financial burden that results from an accident or another vehicle-related incident.

Anyway, if your budget doesn’t allow you to purchase car insurance, this is really a considering problem. Thus, this post will show you five best helpful ways to save-up on the costs of car insurance.

Conduct a general survey

Firstly, you are highly recommended to shop around for a general survey. For the best rates, you should get car insurance quotes from various insurance companies and compare their prices. The company offering a good deal years ago may no longer be the cheapest for your situation now.

You had better decide the amount and coverage you really need as well as the deductible. Then, compare prices for that same amount and type of coverage across carriers.

This next task takes only a few minutes online and helps you a cost-saving bundle. One of the simple online ways to easily find prices is using tools such as NerdWallet’s car insurance comparison tool.

According to a NerdWallet survey of car insurance quotes nationwide, drivers could save an average of $859 a year by shopping around. Thus, it’s worth your time to compare rates from many insurers.

Search for the discounts

Secondly, you should ask your insurance company to consult available discounts to make sure you’re getting everything available to you.

The forms and amounts of available discounts vary widely from insurer to insurer. Below are some common ones you would consider:
  • Multi-policy rebates: Most companies offer you a discount for buying more than one policy from them, such as a car insurance and renters or homeowners insurance bundle for a lower cost.
  • Active security features:  The most common characteristics that qualify for discounts are anti-lock and updated braking systems, the airbag technology, and electronic stability control systems.
  • Going paper-free: Some insurers give you a discount if you subscribe to their paperless facility, sign up for coverage online or choose electronic documents.
  • Paying your annual premiums in full: You usually pay less if paying in full for six or 12 months of coverage instead of paying monthly. Depending on your insurance carrier, you can get up to 15% discount.
Examine the usage-based insurance

Thirdly, it is necessary to check out usage-based insurance (UBI) that is rapidly getting popular, especially among younger drivers.

With the wireless telematics technology that allows drivers to adjust their driving habits, UBI users potentially have the power to save money.

Smartphone apps or plug-in devices are used to track mileage and certain driving behaviors. As a result, you can save money by avoiding the risky habits, such as hard stops and late-night driving.
Moreover, if you don’t drive much, you would try a pay-per-mile program, such as Metromile (available in California, Illinois, New Jersey, Oregon, Pennsylvania, Virginia, and Washington) or Esurance Pay Per Mile (available in Oregon).

According to these programs, customers can save a bundle when driving fewer than 10,000 miles a year. In a word, don’t pay for miles you aren’t traveling.

Pay the bills on time and keep your credit in check 

This is one more tip you should notice. In most states, except for California, Hawaii, and Massachusetts, insurers may use your credit history to define your rates. And a solid credit history will mean lower prices.

For this main reason and others, it is essential to check your credit reports about once a year to make sure the information is accurate.

To measure your ability to handle credit, insurers consult your credit-based insurance score. Below are some best things you can do to improve your credit for lower insurance rates:
  • Be sure to have all your credit card and loan paid on time. Your bill-paying history counts more than any other factor.
  • Pay down your credit card debt, and maintain the balances well below the credit limits.
  • Apply only for loans and credit cards you really need, but not for retail store credit cards just to get discounts.
Consider a cheap car to ensure

Finally, car insurance rates are also different by the kind of car that you drive. If you want to save money on car insurance, you can choose the cheap vehicles to ensure like minivans.
That doesn’t mean you must buy a minivan, but mean considering insurance costs when you shop for a car.

If you are planning to buy, remember to run car insurance quotes for your favorite models to narrow the options with the help of an online car insurance comparison tool.
The drawback here is that you might have to settle for a car that doesn’t live up to your standards. But in case saving money is your priority, this way may work.

Conclusion

Those are some common tips for you, as a new graduate, to smartly save money on car insurance. After all, saving money on car insurance doesn’t necessarily mean that you have to overlook security and protection. Consider appropriate ways to have the best choice.

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