Once you reach the age of 25, your car insurance premiums will drop from that high amount that you have been paying for years. When you first start off with your driver's license, premiums are high because you are an inexperienced driver. This makes it difficult for a young driver to afford those more expensive premiums, which are necessary to drive. That said, there are some ways you can save on car insurance premiums while you are young.
Have A Good Credit Score
Without much of a history to base an insurance premium off of, car insurance providers are going to use whatever they can to gauge how big of a risk you are. One way they do this is by looking at your credit score. Now that you are driving, it is a good time to consider getting a credit card and start building up your credit.
It's important that you demonstrate your ability to not use your entire credit limit, as well as pay off your card on time each month. If you are worried that you don't have self control, try doing this by only using your credit card to buy gas for your car. It's a regular purchase you need to make, but will keep your balance manageable so that you can pay it off each month.
Drive An Old Car
The car that you drive has a big influence on how much you pay for premiums. If the car is new, it means that it will be more expensive to replace the car if you do get into an accident. An older car makes you a lower insurance risk, because even in a worst case scenario, the cash value of a totaled old car could be less than what it costs to repair a new car. Because of this, consider holding off on getting a new car until you are 25 years old.
Take Public Transportation
Your insurance premiums are also based on how much you drive your car around town. If you drive it to school or work each day, it means that you are putting yourself at risk for getting into a potential accident simply because you are driving more miles each year. Tell your insurance provider that you use public transportation for your commuting, and see if that lowers your premium. Public transportation will also save you on gas and parking, so you could see more savings in other ways.
Talk with your insurance company or McHugh Insurance today for more tips.