My wife and I are planning to buy a vehicle and she told me that we should name the policy after her name. She said that we can save money on auto insurance by doing that. Is it true or shes just making this up?

Armand

Houston, TX

Yes, it is true that females will more likely to acquire cheap auto insurance quotes. Female drivers are less likely to cause accidents and if they do its likely minor compared to male which can cause massive damage and sometimes even fatalities. The reason behind this is that, female drivers tend to drive slower, and they use their car less and use it for short distance only. This makes them a lesser risk for car insurance companies therefore gaining them an advantage for cheap car insurance rates.

But it doesn’t stops there; female drivers can still reduce insurance cost by purchasing a car that fits into a low insurance group type. Car models and types are rated from 1 to 20, – one being the lowest and cheapest to insure and 20 which is a high risk and expensive to insure. By selecting cars that are lowly rated, they can save huge amounts of money on premium rather than buying an expensive car which both can get you from point A to B.

Driving experience can also be recognized by insurance companies. If you are a female driver, age 50 or over and have many years of no claims, it is advisable to insure your no claims. Basically, you can claim once before your no claim bonus diminishes.

Reader’s Question:

Im turning 25 next month. Is it true that I can get discount at the age of 25?

Bill

Houston, TX

I do not know any discounts that are given to policyholders when they turn 25 however your car insurance rate may be assessed in a different driver class now. Automobile insurance carriers partly base their auto insurance rates on driver classes. Age, sex driving record and claims history are some of the factors that are being considered when calculating your car insurance rates. The car insurance rates and the rating system vary from one insurance provider to another; but, rates tend to lower when one turns 25 years old. If you have several traffic violations and accident history, I do not think your rates will get lower.

Typically car insurance premiums are not adjusted mid-term because of changes in the car insurance policy. For instance, if you are a new driver and this is your first time to get a car insurance policy then you will be rated as such. Then, mid-policy you get a traffic violation, your car insurance rates aren’t re-calculated. Also, when your age changes mid-policy your car insurance rates typically will not be changed until you renew your car insurance policy.