Car insurance is a must if you own a vehicle, and you’ll be glad you have it after an accident. But you don’t want to spend a penny more than necessary on a policy, and you shouldn’t have to. By knowing exactly what affects your auto insurance rates, you can figure out how to save on car insurance and get good coverage without breaking the bank. Here are eight ways to help you lower your car insurance costs. 1. Shop around Car insurance rates vary by hundreds of dollars a year among insurers for the same levels of coverage, so it’s important to check rates. Rates vary by hundreds of dollars a year for the same levels of coverage. A good driver with good credit can save more than $100 a month, on average, by finding the cheapest insurer instead of the most expensive in the state, a NerdWallet analysis found. Savings can be even bigger for drivers with poor credit or a recent at-fault accident. Those drivers might lower their car insurance costs by more than $200 a month, on average, by picking the cheapest insurer instead of the costliest. On average, rates from a state’s cheapest widely available insurer are less than half the rates from the priciest one, according to our analysis, which compared sample rates for 40-year-old drivers buying a full-coverage policy. But the company with the lowest rates in one state can be the most expensive in another. And the cheapest company for a good driver with good credit might not be cheapest for someone with poor credit or a recent accident. To make sure you’re getting the best rates for you, get quotes from several companies once a year. NerdWallet’s car insurance comparison tool can help you find the best deal. 2. Take advantage of car insurance discounts Every insurance company offers special ways to lower your car insurance premium. To make sure you’re getting all the discounts you’re entitled to, ask your agent to review your possible savings. Here are some discounts offered by the four largest car insurance companies. But remember to compare quotes based on your own situation. Just because an insurer offers many discounts doesn’t mean it offers the lowest overall price. Allstate offers discounts based on vehicles, coverage options, lifestyle and driving. They range from a 5% discount for setting up automatic premium payments to a 35% good student discount. In some states, the company also offers Drivewise, a usage-based insurance program, and Milewise, a pay-per-mile program. Some drivers could save up to 39% by allowing Allstate to track their driving through these programs, the company says. Geico offers discounts for vehicle equipment, driving history and habits, driver training, customer loyalty and membership in one of 500 “affinity” groups, such as organizations and employers. In addition, military members may be eligible for up to a 15% discount, and federal government employees and retirees may be eligible for up to an 8% discount. Progressive offers discounts for owning your home, starting your quote online and signing documents online when purchasing coverage. The company also offers Snapshot, a usage-based program that tracks mileage and driving habits. Most customers earn a discount with Snapshot, but some customers may pay higher rates at renewal time if their driving data reveal risky habits. State Farm offers discounts for students, vehicle-safety equipment and safe driving, among others. The company’s Drive Safe & Save usage-based program gives customers an initial 5% discount for signing up. Safe drivers who log relatively few miles can save as much as 50% on car insurance, the company says. The program and discounts vary by state. 3. Drive safely Traffic tickets and accidents drive up car insurance premiums. If you get a ticket, you may be offered the opportunity to go to traffic school to get it dismissed or reduce the number of violation points that go on your driving record. If you can keep the violation off your driving record, the time spent in class could save you hundreds of dollars over several years. 4. Drop car insurance you don’t need If you’ve got a clunker, it might be time to drop collision and comprehensive insurance, which pay for damage to your vehicle. Collision insurance pays to repair damage to your car if it crashes into another vehicle or object, or flips over. Comprehensive insurance pays if your car is stolen or damaged by storms, vandalism or by hitting an animal such as a deer. If your car is worth less than your deductible plus the amount you pay for annual coverage, then it’s time to drop them. Collision and comprehensive never pay out more than the car is worth. Evaluate whether it’s worth paying for coverage that may reimburse you only a small amount, if anything. If you drop collision and comprehensive, set aside the money you would have spent in a fund for car repairs or a down payment on a newer car once your clunker conks out. 5. Drive a car that’s cheap to insure Before you buy your next car, check car insurance rates for the models you’re considering. The vehicle you drive affects your car insurance premium, particularly if you buy collision and comprehensive coverage. Safe and moderately priced vehicles such as minivans and small SUVs tend to be cheaper to insure than flashy and expensive cars. 6. Increase the deductible You can save money on collision and comprehensive by raising the deductible, the amount the insurance company doesn’t cover when paying for repairs. For example if the repair bill is $2,000, and you have a $500 deductible, the insurer will pay out $1,500. Savings vary by company, so compare quotes with different deductible levels before you decide. 7. Improve your credit Your credit is a big factor when car insurance companies calculate how much to charge. It can count even more than your driving record in some cases. (This is not true in California, Hawaii and Massachusetts, where insurers aren’t allowed to consider credit when setting rates.) To improve your credit for better car insurance rates, focus on these three steps: Make all your loan and credit card payments on time. Keep credit card balances well below your credit limits. Open new credit accounts only when necessary. Applying for too many credit cards can hurt your score. 8. Don’t drive a lot? Consider usage-based insurance If you don’t drive much, consider an insurer that offers a usage-based or pay-per-mile driving program. These policies base rates in part on how much you drive and, in some cases, how well you drive. To participate, you install a small device in your car that transmits data to the insurance company. You score a discount for low mileage and, with many programs, safe driving habits. Metromile, Allstate, Esurance, Nationwide and Mile Auto all offer pay-per-mile insurance in some states. With pay-per-mile coverage, you typically pay a base rate plus a per-mile rate. Several other insurers, including State Farm, Progressive, Safeco and Travelers, offer usage-based insurance programs. With these programs, the insurers track your driving habits such as speeding and hard braking and offer discounts or reduced rates for safe driving. In some cases you can get a discount just for signing up. Some companies, including Allstate, Esurance and Nationwide, offer both types.  Barbara Marquand is a staff writer at NerdWallet, a personal finance website. Email: [email protected] . Twitter: @barbaramarquand .

Why is my homeowners insurance so high? If you’re a new homeowner, this question has probably crossed your mind. Unfortunately, there are many things about your home that can’t be changed (i.e. its location and build) that will inevitably drive up your homeowners insurance costs. Despite these pre-existing conditions, however, there are ways you can minimize risk and possibly obtain lower rates in the future.  Those house hunting for a new home should also be aware of home attributes and structural features that affect homeowners insurance costs. While it’s easy to get caught up in a home’s marble countertops, curb appeal and updated appliances, you should know that its structure and bones have a major impact on the overall costs. If moving to a new part of the country, make sure to research regional concerns before browsing properties. For instance, if moving from the mountains to the beach, you should look at how living in a flood prone area will affect your insurance costs. Of course, every insurance company’s policies are different, so be sure to obtain multiple insurance quotes before settling on a policy. Want a better understanding of what drives up your insurance costs? Here are 7 features that commonly affect homeowners insurance rates. Build and Age From wood-frame to brick construction, the first thing to consider when assessing a home’s risks is its build and structure. Many potential homeowners consider this to be the most important factor when buying a home. In general, the older the home and the worse its condition, the higher the insurance premiums will be. In some cases, insurance companies may flat out refuse to insure a home simply because it’s too risky. A few things to keep in mind: houses made of wood are considered to be more flammable and therefore, riskier. Insurance rates for these homes will typically be higher than for a brick home. Location Of course, where you live will affect your homeowners insurance costs. The riskier your home’s location, the more expensive it will be to insure your abode. For instance, those living in areas of the country prone to hurricanes, tornadoes, earthquakes or other natural disasters may have to pay higher insurance rates. However, if you do live in a region where natural disasters occur, you can minimize insurance costs by purchasing a home built to withstand the elements. For instance, many Florida residents prefer to live in a CBS home (concrete block structure) as opposed to a wood-frame home due to insurance costs. Since CBS homes are less vulnerable to hurricane-force winds than their frame counterparts, the risk of damage is lower, which means insurance premiums will be lower as well. Those living in hurricane-prone areas may also need to purchase additional flood insurance. Unfortunately, there isn’t much you can do to eliminate this risk if you live near the coastline. So when searching for a house, carefully assess the home’s location and its subsequent risks before making a purchase. Home Safety Do you live in a neighborhood where crime rates are considerably higher than average? Be aware that this may affect your homeowners insurance costs. Oftentimes, homes located in high-crime areas are less expensive. However, high insurance costs could offset these savings, so be sure to consider whether the price of the house is really worth the move. Of course, you could potentially lower your rates by amping up your home security. Installing a home security system, new locks and surveillance cameras could all help reduce your homeowners insurance costs. Condition of the Roof Many house hunters forget to consider the condition of a home’s roof when searching for a new house. However, this big ticket item can have a major impact on your insurance premiums, as well as your bank account. Replacing a roof can cost up to $25,000 or more, depending on the materials and size of the home. In addition, a roof that isn’t structurally sound is less likely to provide adequate insulation. This results in decreased efficiency of your HVAC system and higher energy bills. In general, the older and more damaged the roof, the more expensive the homeowners insurance will be. To minimize your risks, be sure to conduct routine maintenance and repairs. Additionally, opt for a roof that best fits your specific climate and geographical location to help to lower insurance premiums. For example, those living in hurricane-prone areas may choose a home with a metal roof, as this roofing material can withstand high winds. Pools and hot tubs If you’re one of the millions of people who have a pool or hot tub in their backyard, be prepared to pay higher insurance premiums. Unfortunately, pools and hot tubs carry serious risks to homeowners and anyone else swimming in these backyard features. For this reason, insurance companies consider pools to be “attractive nuisances.” To protect themselves from pool-related lawsuits, many pool owners will need to purchase additional liability protection, which (cha-ching!) can add up to high insurance costs. According to Value Penguin , typical policies include “$100,000 of liability protection.” However, policyholders must often purchase an additional $500,000 in order to protect against potential lawsuits from swimming pool injuries. Keep in mind though that certain preventative measures, such as adding perimeter fences around the pool and/or alarms on the doors, may help keep liability protection costs low. Trampolines Trampolines are found in thousands of backyards all over the country. Despite their popularity, though, this recreational feature means high insurance premiums for homeowners. Due to the risks associated with trampolines, homeowners must typically purchase additional liability protection. According to Allstate , “a homeowners insurance policy may provide coverage for a trampoline, assuming you have certain safety precautions in place.” These safety precautions usually include the installation of an enclosed trampoline safety net around the trampoline to protect children and adults from falling off. However, Allstate also points out that trampolines may be excluded completely from a homeowners insurance policy. This means “your policy would not provide protection for trampoline-related claims.” If you own a trampoline, make sure you have a thorough understanding of your insurance carrier’s policy regarding these features. Wood Stoves Do you have a wood-burning stove in your home? If so, this could increase your homeowners insurance costs. Given that wood-burning stoves are more likely to start a fire than modern appliances, owning this type of stove increases your risk of fire damage (at least, in the eyes of many insurance carriers). However, you may be able to find a carrier that doesn’t consider a wood stove to be a risk when shopping around for the best price. You may also be able to get a better rate by purchasing a fire extinguisher, adding smoke detectors near your kitchen and hiring a licensed technician to perform routine maintenance on the wood stove. Ready to move? You’ve assessed a potential home’s insurance risks, and you’re ready to make the move. Congrats! To find a reliable moving company, check Moving.com’s extensive network of movers . Our website makes it easy to find and book the best moving company for the job. All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands. Good luck and happy moving! Written By: Martin White https://www.moving.com/tips/7-features-that-drive-up-homeowners-insurance-costs/ \