Wednesday, June 15, 2022

What Raises And Lowers Your Car Insurance

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Watch The Clock After An Accident Or Ticket

5 Ways to Lower Your Car Insurance

In most states, tickets and at-fault accidents remain on your driving record for three or five years. Longtime customers with good driving records may not get a rate hike at all. But many insurers check motor vehicle records every 12 to 18 months.

If your rate does rise, shop around. Some insurers care less about accidents or tickets than others. And when an accident or ticket drops off your motor vehicle record, ask your insurer to remove the surcharge and then re-shop your policy.

Facts And Myths About Driving In Montreal


  • Winter tires are mandatory. In Quebec, your vehicle must have winter tires from December 15 to March 15. It’s the law.
  • Montreal has advance-straight green lights. This signal means you can proceed, but you can’t make a right or left turn.
  • It’s tough to pass a driving test in Montreal. Really tough. SAAQ, the provincial body that conducts driving tests, says only 61% of people pass on their first try.
  • The island of Montreal has 5,917 streets, according to Statistics Canada. Perhaps not surprisingly, over 20% of them are one-way.
  • The most dangerous intersection in Montreal is Highway 40 at Stinson, which averages over 20 collisions per year.


  • Radar detectors are legal within Montreal city limits. False. Operating a radar detector is illegal in Montreal just as it is in the rest of Quebec.
  • Montreal is dangerous. False. Montreal’s crime rate dropped 42% over the past 15 years. Crime data show Montreal is the 24th safest city in Canada, ahead of many cities only a fraction of its size.
  • Montreal is cold year round. False. Ever been to Montreal in the summer? The city can be one hot and steamy place, with temperatures reaching well into the 30 degrees Celsius range.

How Long Does It Take For Car Insurance To Go Down

That depends on your previous driving record and whether you have any at-fault incidents to your name. In general, car insurance companies only consider the past three to five years of your driving history. So, while accidents wont necessarily be removed from your record, they probably wont factor into your rate after that length of time.

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Why You Can Trust Bankrate

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and reviewed by subject matter experts, who ensure everything we publish is objective, accurate and worthy of your trust.

Our insurance team is composed of agents, data analysts, and customers like you. They focus on the points consumers care about most price, customer service, policy features and savings opportunities so you can feel confident about which provider is right for you.

  • We guide you throughout your search and help you understand your coverage options.
  • We provide up-to-date, reliable market information to help you make confident decisions.
  • We reduce industry jargon so you get the clearest form of information possible.

All providers discussed on our site are vetted based on the value they provide. And we constantly review our criteria to ensure were putting accuracy first.

Why Your Car Insurance Went Up After Renewal

5 Ways to Lower Your Car Insurance Premium

Even drivers with a clean record might see an increase in their insurance renewal price. As mentioned above, auto rate increases are sometimes based on factors out of your control, such as claims in your zip code. Or, if youve added a new driver or vehicle to your policy, your rate could also increase at renewal time.

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How Can I Lower My Car Insurance After An Accident

There are a few ways you can lower your car insurance after an accident. You should:

Ask your insurance provider if your policy includes accident forgiveness

  • Maintain a good driving record post-accident
  • Increase your deductible
  • Always inform your insurer about any changes in your circumstances
  • Tell your insurance provider about any accidents no matter how small
  • Ask about other discounts you may qualify for
  • Shop around for a cheaper rate
  • Take a defensive driving course
  • Choose an insurance friendly vehicle
  • Maintain a good credit rating
  • Move to a low crime area

Your Education And Job


Auto insurers found a correlation between education and claims, with fewer claims from people with higher education levels. Each level of education youve completed may help lower your rate a bit, says Robert Hunter, director of insurance at the Consumer Federation of America and former Texas insurance commissioner.

Your job can also earn you a lower car insurance rate. Some companies offer lawyers and executives the best rates, and blue-collar workers the worst. Teachers often get a discount, too.

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Improve Your Credit Score

What does your credit score have to do with car insurance? Unless you live in California, Hawaii or Massachusetts, where the practice is prohibited, most auto insurance companies use a when calculating your premiums. Having a poor credit score could mean paying more for auto insurance.

It’s a good idea to check your credit score when shopping for car insurance and, if necessary, take steps to improve it. Paying your bills on time is the biggest factor in your credit score, but there are several other steps you can take to raise your credit scoreand potentially reduce your auto insurance premiums.

Drive A Safe And Affordable Car

How to Lower Your Auto Insurance Premium

Combining young, inexperienced drivers and expensive or performance cars is a recipe for high car insurance rates. Keep your costs lower by choosing a vehicle with good safety features and high crash test ratings.

If youâre getting a car for your teen, make sure youâre starting them off with something safe and reliable.

If you have luxury vehicles or sports cars, it may make sense to compare the costs of adding your teen to your policy or getting them a separate policy to see which is cheaper.

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Factors That Influence Your Car Insurance After A Dui

There are a few factors that impact the rate of your car insurance after a DUI. While the best course of action is not to drive after drinking in the first place, that advice doesn’t help once you’ve already made the mistake. Knowing the factors that impact your insurance rate can help you find the right insurance and limit the cost. Here are some things to consider:

  • Driving Record. If you have a clean driving record prior to your DUI and maintain a clean driving record after, it can help you lower your insurance rates.
  • Classes. Taking classes recommended for those with a DUI shows that you’re interested in improving your safety record and committed to staying sober while behind the wheel.
  • Make and Model of Your Car. The type of car you drive impacts the rate of your insurance.
  • Area Where You Live. Your province is a consideration in the cost of your insurance.
  • Increase Your Deductible. Policies with higher deductibles cost less, saving you a bit of money while you maintain a clean driving record.
  • Time. Every year that passes without an accident, claim or DUI will help you reduce the cost of your insurance.

How To Lower Your Car Insurance Tips For Reducing Rates

Of all the things we have to pay for, from mortgage or rent payments, to credit card bills, utility bills and more, auto insurance is yet another one of those necessary expenses that keep us reaching into our pockets month after month. However, that doesnt mean you have to spend a lot for it! If you are like us, you are always looking for ways to cut down on your bills. To help you we have put together this list of things you can do to lower your car insurance rates so that you can hold on to more of your hard-earned money each month.

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Frequently Asked Questions On Duis & Car Insurance:

How much does car insurance go up after DUI?

Your rate after a DUI conviction will depend on your driving record and other factors but typically, rates for those with a DUI are three to five times higher than those without a blemish on their driving record.

Do I have to tell my insurance company about a DUI?

Yes. If your insurance hasn’t been informed and you have a claim later, they are within their rights to void your insurance. As a result, it would be similar to not being insured at all.

How long does a DUI stay on my driving record?

A DUI is a very serious offence. How long it stays on your record depends on the province you live in. However, regardless of where you live in Canada, a DUI will have long lasting consequences.

Should I get a lawyer to help with my DUI case?

Because of the serious consequences of being convicted for a DUI, you should be prepared to handle your case by hiring an experienced DUI lawyer to advise you. Seek legal advice from the moment you have been accused of violating the law. Your lawyer might be able to protect you from serious penalties.

Adding Vehicles And Drivers

Car Insurance 101

If you purchase a more expensive car, your rate is likely to go up as your new ride may be more likely to be stolen and cost more to repair or replace than your previous vehicle. Adding new drivers to your existing policy could also drive up your price especially teenagers or other family members with poor driving records.

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A History Of Convictions Or Surcharges

Traffic violations, such as driving under the influence and speeding, may prompt your insurer to increase your auto insurance premium. Following a crash, the provider may also raise your rate if you were 50% or more responsible for the accident. The insurer may also apply a price increase for a history of late payments.;

Carriers refer to these types of increases as “surcharges.” The increase may remain until you prove that youre a good driver. The surcharge amount and the length of time you must pay it will depend on the severity of the incident.;

What you can do: Improve your driving skills following an at-fault accident. Avoid accidents. Also, consider adding accident forgiveness to your coverage.

Monthly Vs Annually Car Insurance Premiums

Paying your insurance premium annually is usually the more cost-effective alternative option compared to making monthly payments.

Many companies may give you a discount if you pay in full since it saves them time and annual plans are great for individuals whose income varies throughout the year and who have trouble making monthly payments.

Therefore, if you frequently incur late penalties, paying your insurance payment once a year will save you money.

Providers offer a monthly payment plan if you can’t afford to pay an entire year’s insurance cost in a lump sum. Most insurers, however, impose an installment fee for this type of plan since processing 12 payments instead of just one requires extra effort on their part.

For some people, paying in monthly installments is a preferable alternative even if there is a monthly cost because it allows individuals to budget their money every month.

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How Does Distracted Driving Impact My Premium

Distracted driving is a major conviction. The fine for distracted driving is $490, plus three demerit points; and if you are convicted of distracted driving, you can expect your costs to go up.

If you have previous tickets and then get a distracted driving charge, your costs could skyrocket and you may get your policy cancelled.

What Else Causes An Insurance Increase

Quick Millennial Money Tip | Raise Your Car Insurance Deductible

Rate increases can vary by insurance company and state laws, but here are some common factors insurance companies consider:

  • Severity of the accident. The overall severity of an accident and cost of a claim can impact rates. A minor fender bender typically doesnt have the same impact as a major accident.
  • Your driving history. Car insurance companies like safe drivers. If youve gone several years with no accidents or moving violations, your insurance company may not raise your rates for a minor accident.
  • Policy details. Your car insurance policy might include accident forgiveness, which generally means your insurer wont raise your rates after an accident.

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Should You Cancel Your Policy Or Adjust It

Although you have the option to change auto insurance carriers at any time, take a moment to consider whether canceling your vehicle insurance coverage is the correct option before going through with it. You will typically weigh your options if you’ve recently:

  • Moved
  • Added another driver to the policy
  • Got married
  • Approached renewal date

You should also thoroughly research an insurer before switching to a new company. Don’t shop just for cheap car insurance based on pricing.

Request recommendations from friends and family and check with your state insurance department to see whether they keep track of consumer complaints per firm.

Whether you decide to cancel or renew your auto insurance, remember that gaps in coverage may cause difficulties down the line. Why? Some insurance companies see lapses in coverage, even for a few days, as a red flag. They see you as more of a risk than other policyholders. It could result in higher premiums in the future.

Are you thinking about canceling your insurance policy? Give your agent a call first or use SmartFinancial’s online tools to compare more than 200 carriers. By arming yourself with the best information, you can make the right decision for your situation.

Lower Car Insurance For Teenage Drivers

Insuring a teen of either gender means an average annual increase of 79% to your car insurance premium. But for boys? Thats a whopping 92% increase!

Still, Caswell said there are a few measures that could decrease the sticker shock.

  • Good Student Discount: Most carriers reward academically sound teenagers. A 3.0 GPA could get you a discount of up to 25% off your premiums.
  • More Education: Accordingly, students who take drivers education classes or attend driving school will have a chance at discounts. Its all about the effort toward accident prevention.
  • Sorry, Sport: If you have a teenage son whos the adventurous type, no doubt he has his eye on a souped-up sports car or a jacked-up truck. Do not buy him one! In addition to the fact that those vehicles are exorbitant investments, when it comes to insurance, giving those high-level keys to your teenager is like placing a Kick Me sign on the seat of your trousers.

Many parents will tell their kids to get a job if they want to buy, let alone insure, a car. Thats not a bad idea, but dont let the high price of insuring a teen daunt you. The strategies above can help shrink down the costs to something reasonable.

Balancing your budget can help shave down costs even more. It will help to know where your money comes from and where its going every month. This may seem like intuitive knowledge, but its not. The results will surprise and maybe even confound you.

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Choose The Right Vehicle

If you’re in the market for a new car, know that the cost of insurance can vary widely depending on your vehicle. Some cars are more complex to repair, more prone to theft or more easily damaged than others. Before you choose a car, check with insurance companies to get an estimate of the insurance premiums for that vehicle.

Features to protect your car and passengers can help lower your insurance premiums. For example, Geico offers premium discounts of up to 25% for cars with anti-theft devices such as an immobilizer or location-tracking device. You may also be able to get a discount on insurance if your car has safety features such as airbags, daytime running lights or anti-lock brakes.

Its All About You We Want To Help You Make The Right Coverage Choices

Why is My Car Insurance So Expensive?

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships dont influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

  • Raising your auto insurance deductible can help to lower your car insurance premium
  • A deductible is the amount of money you must pay out of pocket for an accident
  • There are no legal requirements for deductible amounts
  • Deductibles typically range from $250 to $2,500

So, the higher the deductible, the more you must pay towards a claim. The more that you have to pay towards a claim, the lower the risk you are to your insurance company.

Therefore, your premium cost will decrease.

Are you looking for a way to get car insurance rates close to home? Simply enter your ZIP code above;to get quotes near you today!

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