Before you decide on what type of car insurance policy to purchase, you need to determine how much you can afford. Car insurance costs vary greatly depending on the type of car you drive, whether it’s a high-end luxury vehicle or a sports car. High-end cars and sports cars are particularly expensive to insure, and drivers with poor credit scores are often charged higher rates. Listed below are some tips to help you get a better idea of the average cost of car insurance.
High-end cars – Car Insurance Cost
Luxury car insurance is usually more expensive than standard vehicle coverage. On average, a high-end luxury sedan will cost almost $100,000. Because of this, luxury car insurers must pay out huge amounts of money in the event of an accident. Insurance companies also consider the car owner’s risk profile when calculating the premium. Luxury cars are typically faster than other cars, so they’re deemed more of a risk by insurance companies.
Insurers often offer a discount when you purchase several lines of insurance from the same company. For instance, BMW owners can get cheaper car insurance from USAA. The rates vary depending on the model year, but for a 2019 BMW 3 Series, the cost of insurance will be $1,718 a year. A 2014 BMW 3 Series costs $1,332 a year. Moreover, BMW’s insurance rates will be higher than for a 2009 model.
Sports cars – Car Insurance Cost
Sports cars are not the only vehicles with high insurance rates. Insurers also classify them differently. A Porsche 911 is considered a sports car even though it has an expensive price tag. A Tesla Model S has an expensive MSRP and is also considered to be a high-end sports car, so insurance rates are higher than average for a Tesla. You can compare auto insurance quotes from top auto insurance companies to see how much they charge for sports car insurance.
Sports car insurance costs more than normal auto insurance, but there are ways to reduce the cost. You can save money by raising the deductible or storing your sports car. Obtaining multiple quotes can help you get the best rate possible. While sports car insurance premiums are high, they are lower than the average vehicle insurance premium. This is especially important if you have a sports car, as you’re more likely to be involved in accidents compared to a standard car.
Drivers with poor credit scores
When it comes to finding the best car insurance for drivers with poor credit, the first thing to consider is the insurer. GEICO has some of the lowest car insurance rates for drivers with bad credit. In a MoneyGeek study, GEICO charged a sample driver $1,676 more than a driver with excellent credit. But, even with bad credit, you can find a policy that will cover you in case of an accident.
The first step to lowering your auto insurance costs is to work on improving your credit score. WalletHub offers a free credit score check as well as top tips to improve your credit score. As a general rule, your standard credit score heavily impacts your auto insurance rates. To improve your credit score, make on-time payments on all of your accounts, maintain a low balance on your credit cards, and make other smart choices that will boost your credit score.
The average increase in premiums for drivers with poor credit is higher than in other states, except Hawaii, Massachusetts, and California. Although some insurance companies use credit scores to determine insurance premiums, it is still a controversial issue. Many people oppose the practice. The average increase is $49. The best way to understand the impact of your credit score on car insurance premiums is to shop around.
While bad credit will affect your ability to obtain auto insurance coverage, you can still find the best rate. Try searching for smaller insurers that specialize in insuring drivers with poor credit. They may have lower rates and better service than larger insurance companies. You should also consider switching your current insurance company. MoneyGeek’s analysis found that GEICO and Nationwide offer the best rates for most drivers. In addition, GEICO has the cheapest car insurance quotes for drivers with bad credit.
Vehicles with high theft and crash rates
Some vehicles are safer than others and less expensive to insure, so their insurance costs are reduced if the drivers drive less than their insurance companies believe. Many insurance companies use data on crash and theft rates to determine rates. Some vehicles have safety features such as airbags or anti-theft devices that make them less attractive to thieves. Cars with security features also help keep the occupants safer. The amount of coverage required by state law also affects insurance rates.
As a result, vehicle theft is a major cause of insurance costs. According to the FBI, 75% of all motor vehicle thefts occurred on American roads. Fortunately, auto insurance policies help protect the insured in case of theft, making it crucial to have adequate coverage. The average price of a new car is $45,031 in September 2021. By comparison, insurance companies should be able to determine the exact cost of coverage before purchasing the policy.
Drivers with blemished driving records
If you have a blemished driving record, you probably want to get a cheaper policy to cover your blemishes. Depending on the type of violation you have, your insurance will cost more than you think. Listed below are some ways to reduce your car insurance cost. By following these tips, you can get a great car insurance policy in no time.
In addition to contacting a company’s representative, you can also inquire about discounts. Most insurance companies offer a good driver and student discount. These discounts vary in size, but most offer at least a 10% discount. Another way to save money on your insurance policy is to bundle your insurance with your home insurance. If you bundle your insurance policies with the same company, you’ll save 10% on both. Taking a defensive driving course can also help you lower your insurance rates.
The most affordable insurer for drivers with bad driving records is Metromile, with average premiums of $105 per month. The cheapest average rates for drivers with blemished driving records are in Vermont, North Carolina, and Hawaii. DUIs do not affect your driving record after five years. And once you’ve paid off your debt, your record will no longer affect your ability to drive. Getting cheap car insurance is possible, so don’t give up.
