Want to cut your car insurance rates? Get married or get older. Here are other ways to save…
It doesn’t pay to be young when it comes to car insurance. Here’s some proof: A 25-year-old single male pays an average of 49 percent less for car insurance than a 20-year-old single male. It’s the same for women – a 25-year-old single woman pays 39 percent less than 20-year-old single woman. But your average car insurance rates fall each year until your 60.
That’s according to a new study by InsuranceQuotes.com. Sex and marital status also come into play.
The average single 20-year-old woman pays 23 percent less than the average single 20-year-old man for the same policy. That chasm shrinks to four percent by the age of 25 and from ages 30 to 65 a man’s premiums are actually lower than a woman’s.
With car insurance it pays to get married when you’re young. The average married 20-year-old female pays 28 percent less for car insurance than the average single 20-year-old female. With men, a married 20-year-old man pays 24 percent less than a single 20-year-old man. By age 25 married women pay seven percent less than single women and married men pay nine percent less.
Save on car insurance
There are ways to save money despite your age, sex and marital status. Laura Adams, InsuranceQuotes.com’s senior analyst recommends the following…
“In addition to regularly comparing at least three quotes from different insurers, consumers should review potential discounts with their current insurer. This is even more important for younger drivers because they tend to pay the highest rates. Consider things like good student discounts, avoiding small claims and bundling your car and renter’s insurance policies with the same carrier.”
Gary Herman, President of Consolidated Credit, has another valuable tip, one that many people don’t know about…
“Most states in the U.S. allow car insurance companies to investigate something called your credit-based insurance score. The score analyzes specific elements of a person’s credit history to predict if a consumer will have an insurance loss. How much debt you owe and missed payments are just a couple factors calculated into this score. If you have a poor score your insurance rates could be higher. It’s just another reason why you should be vigilant with your finances.”
For more tips on how to reduce your transportation costs, visit Consolidated Credit’s section on cutting car costs.