It’s no secret. I’m somewhat of a bad driver. Not bad as in unsafe, but bad as in I have an issue with speed limits. Oh, and I may have totalled my car once before.
It has taken 4 years to slowly reduce that rate down to $2300 a year. I know what you’re thinking; paying $200/month is insane. I happen to agree with you. But I need my car for work. While I do have the perk of working from home more often than not, living an hour away from Toronto makes running a fashion and beauty magazine very difficult. It also makes getting to the airport every difficult. Nevermind the fact that 90% of the time that I drive my car happens to be on the highway. But hey, who’s counting.
Some of the reasons that contributed to my high insurance rates:
Numerous speeding tickets: I try very hard to not speed, but it’s very tempting when you’re the only one on the road at 2am.
Write-off of a 3 year old car: I’m not sure if the age of the car has anything to do with it, but I add it in there just in case. Also, I do want to say that weather was HUGE factor in this.
Frequently changing insurance companies: Let’s face it, once you get enough tickets, it becomes difficult to stay with the same company. Some raise their rates, others find you to be high risk. Either way, you forego some of the loyalty discounts when you shop around.
Location: Not sure if you know that living in certain areas raises your rates 1.5 to 2x. It’s always a great idea to check the insurance rating before you move somewhere (if you’re renting)
Type of Car: I drive a red 2 door sports car. I’m pretty much asking for trouble.
Tips on how to reduce your insurance rates:
Don’t speed: Ok, I know this is a stupid statement, but thinking about what I can do with the money instead of paying it to my insurance company makes me ease up on the gas pedal, sometimes. I can use that extra $2200/year on a few vacations.
Find a broker who likes you: I love mine. He goes out of his way to look for lower rates for me, and proactively calls me to let me know. He is also willing to answer questions about my friends’ insurance policies.
Disclose your entire history: I know most people don’t think to insure learner driver, but being on an insurance policy even if you’re a learner driver helps with your history.