If you have driving-age children you don’t need to be told just how expensive insurance can be. Young adults often face the most expensive insurance rates but these tips can help drivers avoid costly insurance rates.
Don’t drink and drive, avoid accidents and slow down. Sounds simple, but a clean driving record can save hundreds of dollars a year. A separate 2020 analysis from NerdWallet showed that, on average, 25-year-old drivers pay nearly 25% more per year for full coverage car insurance after one speeding ticket and almost 50% more annually after a car accident.
Consider nontraditional car insurance
If you won’t be driving much for the foreseeable future, you could save money by switching to per-mile insurance, with rates based on how many miles you drive.
Similarly, if you’re a safe driver, consider usage-based coverage, which uses an app or device to track driving behavior, such as speeding and hard braking, to determine a discount or reward.
Build your credit
In most states, insurers use a credit-based insurance score to calculate your auto insurance rate. This score looks at information such as payment history and outstanding debt, similar to the credit scores used to get a credit card or loan, but weighed differently. The practice is not allowed in California, Hawaii, Massachusetts or Michigan.
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