Other reasons your car insurance can go down
Age isn’t the only reason auto insurance premiums can go down. Here are some factors that may help push your rate lower.
You have three or more years of safe driving
Insurers look at your driving record to determine the likelihood of future accidents and claims. Traffic violations on your record, such as speeding tickets, may cause your rates to go up because you’re more likely to file a claim.
Minor violations tend to fall off your driving record after about three to five years, while more serious incidents may remain longer. Once the violation clears, it typically won’t affect your premium. Your car insurance rate may go down because you’ve shown the insurer you’re a safe driver.
You move
Where you live also affects your car insurance premium. Urban drivers typically pay higher premiums compared to people in rural areas because they’re at a higher risk of vehicle theft, vandalism, and car accidents. You may also pay more for car insurance if severe weather and natural disasters routinely affect your area.
Location affects other factors, too. Auto insurance fraud varies in each region, and the costs of car repairs and medical care can change from one area to the next. Insurers may raise rates in high-cost areas.
If you move to an area with lower risk and cheaper costs, your car insurance premium may drop.
You buy a different car
Your car’s age, make, and model can influence your auto insurance rate significantly. Several factors — like your car’s age, safety features, cost of replacement parts, and price — help determine the likelihood and potential cost of claims.
Slightly older, practical family vehicles are usually the cheapest to insure. So, your insurance rate may decrease if you’ve recently traded a higher-risk car for a more standard vehicle.
You switch insurance companies
Car insurance companies typically use the same criteria — such as age, gender, and driving record — when setting premium rates. But every insurer uses a different equation to weigh these factors. As a result, car insurance rates can vary greatly from one company to another — even for the same coverages. Comparing quotes and switching to a cheaper insurer can help you save money.