As you age, your auto insurance rates begin to drop. This often doesn’t happen though until a significant year marker has been reached, such as 25 or 50. Waiting all that time to meet the new age limit and enjoy this drop can be frustrating, though. Rather than waiting, here are some things you can try now to get your rates lowered.
Pay As You Go
For seniors, a Pay as You Go Plan may be the best option for keeping insurance rates down. The Insurance Institute for Highway Safety, as well as the Highway Loss Data Institute, have come to the conclusion that senior drivers travel far less than those who are younger. Since they spend less time on the road, it provides less chances for accidents. A usage-based method would allow elderly drivers to pay for the miles they have driven, rather than an average monthly rate. Discounts could also be provided for those who avoid driving during rush hours when countless cars are on the road.
Consider a New Living Environment
Where you live plays a large part in the insurance prices you pay. When your home is located in a rural area with low traffic, insurance costs will be lower than areas where high traffic is present. For instance, Forbes reports that in 2014 residents of Detroit, MI paid over 150 percent more than most other areas of the country. That means it is usually better to live in the country than in a big city.
Insurance companies often look at the zip code to determine the amount of accidents that have been reported in the area. They may also look to see what type of parking is available, and whether your car will be secure. Those with a garage, for example, would be far less susceptible to theft or an accident than someone who has to park on the street. If you’re considering moving anyways, it might be a good idea to check out accident rates and parking structures to ensure you qualify for a better rate.
Refinance
You may have gotten an auto loan at a time when your credit was low and you had limited income. If your situation has changed and your credit history is looking better, it might be a good time to refinance. Refinancing your vehicle typically results in a lowered interest rate. This lower rate often helps lower the cost of insurance as well.
Refinancing doesn’t always have to mean lowering the rate, and doesn’t have to be done when things are going good. You may find yourself struggling to pay your car loan. If this is the case, you can sometimes refinance to increase your loan term. By adding additional time to the loan, it can reduce your payments so they are more manageable. But even if you’re not far into the repayment plan and you’re doing fine, it could still save you money in the longrun. Money Talks News financial expert Stacy Johnson says the bulk of the interest on your loan is normally paid off in the first half of the load, so refinancing early could save you more than if you wait if it means you get a lower rate.
By considering these three methods, you can lower your rates sooner rather than later. Through refinancing, changing your address or paying as you go for older generations, you can lower your insurance rates without jumping through hoops.
Other Resources:
http://www.moneytalksnews.com/navigating-car-loan-refinance-for-long-haul-savings/
