how can I convince insurers that I'm low risk?

Question

I'm under 25, haven't had my drivers licence for long and started working at the beginning of this year. The vehicle insurance qoutes that I get are almost double the instalment of the car. Is there a way that you can convince your insurer that you are low risk?

I don't necesarily drink or smoke, if that ever does count.

Answer 1

The above answers are certainly true, but you should check with your insurance agent because your insurer may have an age limit themselves in terms of when the rates change. My rates were a certain cost until I reached age 26 for a woman and not till my husband turned 28. Some insurance companies have lower cut-off ages, so it's best to ask them if you feel like shopping around for new insurance. It also sometimes depends on what kind of car you drive in terms of safety features (alarm system, ALBs, automatic seat belts).

Some car insurance places have started basing their rates on their client's credit histories, so if you feel you have a low credit score of not so stellar history of bill payments, trying to decrease your debts and keeping up with bill paying may make a slight difference.

The best way to save money on insurance is to keep your eyes peeled for deals by shopping around, and to keep in touch with your agent regularly to inquirer about new discounts you could qualify for (like have they started a safe driving discount? sometimes agents won't apply these to your policies right away, you need to give them a little nudge to rerun your numbers.)

Oh, that and not living in New Jersey. Rates here are just astronomical no matter what you do.

Answer 2

Unfortunately you are not low risk. As an under-25 you are in the highest statistical risk category. Only time is going to reduce your insurance bills, but that said you should ALWAYS shop around for the best deal.

Being a non drinker or non smoker generally does not affect auto insurance rates, at least in the US. That said, the vehicle you drive and your driving record will have a MAJOR impact on your rates. A boring old grocery-getter will cost a LOT less to insure than a sports car especially if you are an under-25 male.

Answer 3

Well, you can't. With auto insurance, the profit margins are SO LOW (actually, average $1.09 paid out for ever $1 taken in), that policies are NOT negotiable. It is what it is.

If you're in a state where there's rate competition, shop around - but all your quotes will be in the same ball park. You're a newly licensed driver, and apparently you have a newer car.

Your BEST bet, is to sell off the car (assuming there's a loan on it with that installment reference), buy a $2,000 car for cash, that's at LEAST 6 years old, and DON"T CARRY COLLISION OR THEFT on it. Those are the coverages killing you.

If you insist on driving a new car, or carrying full coverage, you're going to pay through the nose.

Answer 4

It isn't your "personally" per sey. More so the make of your vehicle can take a hefty toll on how much you pay per month/6 months/year/etc. Also mentioning to them, while still being honest how many miles you intend to drive is a big factor. Last but not least insurers look at your age, sex and credit report among other things to determine what your rate is. I believe as of last year only State Farm & Safe Auto were the only ones in our area who did NOT do credit checks. If you have iffy credit, this can make a HUGE difference. For me while my credit was not so great, it meant $500+ difference in a monthly payment. When you turn 25 also your rate goes down, because they consider you as less of a risk. Also the area in which you reside could play a factor in your quote. When I lived in a particular apt complex my rate went up about $40 a month because of the local risk regarding wrecks, break ins, vandalism, etc. It wasn't even that bad of an area, but things happening around us caused our rates to go up. Good luck!

Answer 5

If you live in the US, auto insurance is usually higher for males. Apparently they have the statistics that prove under 25 males have more accidents than females.
Also most insurances go down when you reach 21 or 24. (That's what happened to me)
It also depends on your car. My brother (under 25) looked into getting his 1996 mustang in his name it was $5000 DOUBLE what he was paying for his 2001 Ford taurus.
Good luck!

Answer 6

tell your insurer you are such a low risk you will sign a paper saying you will be 100 percent liable for any claims for the first year. if indeed you are that low of a risk the insurer will take you up on your offer and should give you a better rate

Answer 7

You can't convince them of that fact. They aren't targetting you personally, but they do target that age demographic, since that is the demographic (one of them) which tends to cost them the most in claims paid out.