When it comes to car insurance, there are a lot of myths that can end up costing you money. You might have heard that red cars cost more to insure or that your credit score doesn’t matter. Believing these misconceptions can prevent you from finding real savings. We’re here to set the record straight and show you what truly impacts your rate. By separating fact from fiction, you can make smarter choices about your coverage. This guide will debunk the common myths and give you actionable advice on how to lower car insurance premiums based on what really counts.
Key Takeaways
- Your habits are your greatest savings tool: Your insurance rate is a direct reflection of your actions. Maintaining a clean driving record, managing your credit responsibly, and avoiding lapses in coverage are the most powerful, long-term strategies for keeping your premium low.
- Make strategic adjustments to your policy and vehicle: Don’t just accept the standard options. Actively choose a higher deductible you can afford, drop unnecessary coverage on older cars, and ask about discounts for your vehicle’s safety and anti-theft features.
- Be an active shopper and partner with an expert: Never settle for the first quote. Compare identical policies from multiple insurers and ask direct questions about discounts to ensure you’re not leaving money on the table.
What Actually Determines Your Car Insurance Rate?
Ever wonder how your car insurance premium is calculated? It can feel like a mystery, but it’s actually a pretty straightforward process based on risk. Insurance companies look at a handful of key factors to predict how likely you are to file a claim. Understanding these factors is the first step toward finding ways to lower your bill. From your driving habits to the car you own, several pieces of your personal profile come together to create your unique rate. Let’s break down the most important ones.
How Your Driving Record Affects Your Rate
This one might seem obvious, but it’s the biggest piece of the puzzle. Your driving history is a direct reflection of the risk you present on the road. A clean record, free of accidents, tickets, and claims, shows insurers that you’re a safe and responsible driver. Because of this, they’ll reward you with lower premiums. The Insurance Information Institute confirms that one of the best ways to keep your insurance costs low is to have a good driving record. Even a single speeding ticket can cause your rate to creep up, so staying safe behind the wheel is your best strategy for long-term savings.
The Car You Drive (and Its Features)
The type of car you drive has a major impact on your insurance premium. Before you even think about buying a new or used car, it’s a great idea to find out how much it will cost to insure. Insurers look at a car’s price, typical repair costs, overall safety record, and even how often that model is stolen. A sensible sedan will almost always be cheaper to insure than a high-end sports car or a large SUV that costs more to repair. Thinking about these factors beforehand can help you choose a car that’s not just fun to drive but also affordable to protect.
Where You Live and Park
Your location matters more than you might think. Insurance rates are often set by zip code because factors like traffic, theft, and accident rates vary from one neighborhood to another. If you live in an urban area with more congestion and crime, you’ll likely pay more than someone in a quiet, rural town. Even the frequency of severe weather like hail in your area can play a part. Where you park your car overnight—whether in a secure garage or on the street—can also influence your rate. It’s all about the local risks associated with your specific address.
The Role of Your Credit Score
This factor often surprises people, but in most states, including Illinois, your credit history can influence your car insurance rate. Insurance companies have found that people with higher credit scores tend to file fewer claims. It’s not about how much money you have, but rather how you manage your financial responsibilities. A strong credit history suggests you’re more likely to be a responsible person overall, which insurers believe translates to being a more responsible driver. Maintaining good credit is another way you can work toward a lower premium over time.
Find Every Car Insurance Discount You Deserve
You might be paying more for car insurance than you need to. Insurers offer a wide range of discounts, but they aren’t always applied automatically. It pays to be proactive and ask what savings you qualify for. From how you drive to the car you own, there are plenty of opportunities to lower your premium without sacrificing coverage. Let’s walk through some of the most common discounts to make sure you’re getting every dollar of savings you deserve.
Reward Your Safe Driving Habits
Insurance companies love safe drivers because they represent a lower risk. If you have a clean driving record, you’re already on your way to a better rate. You can also earn discounts by completing an approved defensive driving course, which can sharpen your skills and demonstrate your commitment to safety. Many insurers also offer telematics programs that use a smartphone app or a small device in your car to monitor habits like braking and acceleration. Proving you’re a safe driver through one of these programs can lead to significant savings on your premium.
Bundle Your Policies and Stay Loyal
One of the easiest ways to save is by bundling your policies. If you have your auto insurance with one company and your home or renters insurance with another, you’re likely missing out on a multi-policy discount. By bringing all your policies under one roof, you can often secure a lower rate on each one. At Feld Insurance, we can help you explore comprehensive coverage for your car, home, and more to maximize your savings. Insuring multiple vehicles on the same policy is another simple way to get a multi-car discount.
Leverage Your School or Career for Savings
Your report card or your profession could be your ticket to a cheaper insurance bill. If you have a student on your policy who maintains good grades (usually a B average or higher), be sure to ask about a good student discount. These savings can be substantial, often ranging from 5% to 25%. Additionally, some insurers offer discounts to people in certain professions, like teachers, first responders, or engineers. Members of specific alumni associations, professional organizations, or even the military may also qualify for special rates.
Save with Safety and Anti-Theft Features
The features built into your car can also protect your wallet. Vehicles equipped with safety features like anti-lock brakes, airbags, and daytime running lights often qualify for discounts because they can reduce the severity of accidents and injuries. Similarly, anti-theft devices such as car alarms or tracking systems make your vehicle less of a target for thieves, which lowers the risk for your insurer. These discounts can add up, sometimes trimming as much as 30% from certain parts of your coverage.
Drive Less, Pay Less
If your car spends more time in the garage than on the road, you should be paying less for insurance. Many companies offer a low-mileage discount for those who drive fewer miles than the average person, which is typically under 7,500 miles per year. This is especially relevant if you work from home, have a short commute, or use public transportation regularly. Carpooling to work can also help you qualify. Be sure to give your insurer an accurate estimate of your annual mileage to see if you’re eligible for this discount.
Improve Your Driving Record and Lower Your Bill
Your driving record is one of the biggest factors insurance companies look at when setting your premium. Think of it as your driving resume—it tells them how risky you might be to insure. A history of accidents, speeding tickets, or other violations suggests a higher chance of a future claim, which leads to a higher rate. The good news is that you have a lot of control over this. By focusing on safe driving habits, you can directly influence your insurance costs over time. A clean record doesn’t just happen by accident; it’s the result of consistent, mindful driving. Let’s walk through a few practical ways you can build a stellar driving record and see the savings on your bill.
Keep Your Driving Record Clean
This might sound obvious, but it’s the foundation of affordable car insurance. Insurers reward drivers who consistently demonstrate they are low-risk. This means avoiding traffic tickets for things like speeding or running red lights, and most importantly, steering clear of at-fault accidents. A single violation can stay on your record and impact your rates for three to five years. Insurers regularly review your driving history, especially at renewal time, and a clean slate is your best ticket to lower premiums. Consistently practicing safe driving habits is the most reliable long-term strategy for keeping your insurance costs down and qualifying for the best safe driver discounts.
Take a Defensive Driving Course
Proving you’re a safe driver can be as simple as going back to class for a few hours. Many insurance providers, including us here at Feld Insurance, offer a discount for completing an approved defensive driving course. These courses are designed to refresh your knowledge of traffic laws and teach you techniques for anticipating and avoiding hazards on the road. It shows your insurer that you’re proactively investing in your safety. Before you sign up, just make sure to check with your agent to see which local or online courses are approved for a discount on your specific policy. It’s a small investment of time that can pay off for years.
Use Telematics to Prove You’re a Safe Driver
If you’re confident in your driving skills, why not get rewarded for them? Usage-based insurance programs, often called telematics, use a small device or a smartphone app to track your actual driving habits. This includes things like how hard you brake, your average speed, how often you drive late at night, and your total mileage. Instead of relying solely on your driving record, these programs use real-time data to assess your risk. If you consistently demonstrate safe behaviors, you could earn a significant discount. It’s a fantastic way to let your good habits speak for themselves and potentially lower your premium based on how you actually drive.
Steer Clear of Violations and Claims
Every year you go without a ticket or an at-fault accident, you become more valuable to an insurance company. Many insurers offer specific “claims-free” or “violation-free” discounts that can increase the longer you maintain a clean record. This is why it’s so important to drive carefully and consider the long-term impact of filing a small claim. While you should never hesitate to use your insurance for a significant accident, it might be worth weighing the cost of a minor fender-bender against the potential loss of a claims-free discount. Always feel free to give your agent a call to discuss the situation before making a decision—we can help you understand the financial implications.
Adjust Your Coverage to Lower Your Premium
One of the most direct ways to lower your insurance bill is by fine-tuning your policy itself. You don’t want to be under-protected, but you also don’t want to pay for coverage you no longer need. By making a few strategic adjustments to your deductibles and coverage types, you can find significant savings. Let’s walk through how to get the right balance of protection and price.
Choose the Right Deductible
Your deductible is what you pay out-of-pocket on a claim before your insurance takes over. Choosing a higher deductible is a simple way to lower your monthly premium. For example, moving from a $500 to a $1,000 deductible can create noticeable savings. The trick is to pick an amount you could comfortably pay if you had an accident. It’s a personal financial choice that gives you direct control over your rate. We can help you explore different options to see how they affect your premium.
Review Your Coverage Limits and Extras
Illinois has minimum liability requirements, but many policies include coverage that goes far beyond that. If you own your car outright (no loan or lease), you have more flexibility to adjust your coverage. Lenders often require comprehensive and collision, but without that obligation, you can decide if it’s still right for you. Also, check for add-ons like rental reimbursement or roadside assistance. If you have a separate motor club membership, you might be paying for the same service twice. A quick policy review can uncover these easy savings.
Know When to Drop Comprehensive and Collision
Collision and comprehensive coverages pay for repairs to your car from accidents, theft, or other damage. While crucial for new cars, this coverage may not be worth the cost for an older vehicle with a low market value. A good rule of thumb: if your car’s value is less than 10 times the annual premium for the coverage, consider dropping it. For example, if the coverage costs $400 a year for a car worth only $3,000, it might be time to let it go. You can check your car’s value online to help with the math.
Tailor Coverage for Your Older Car
As your car ages and its value drops, your insurance needs change. The goal is to align your coverage with its current worth, not its original price tag. Beyond dropping comprehensive and collision, look at the whole picture. If it’s a reliable backup car you don’t use daily, you might not need rental reimbursement coverage. The money you save by tailoring your policy adds up over time. It’s all about creating a customized insurance plan that protects you without overpaying for coverage that no longer makes financial sense for your vehicle.
Shop Smarter: How to Compare Insurance Quotes
Shopping for car insurance is one of the most effective ways to make sure you’re getting a great rate. But finding the best value isn’t just about finding the lowest price—it’s about finding the right coverage for your life at a competitive price. When you take the time to compare your options thoughtfully, you can feel confident that you’re not overpaying for a policy that truly protects you. Think of it less like a chore and more like a smart financial check-up. It’s your opportunity to review what you’re paying for and confirm it still makes sense for your needs. By following a few simple steps, you can make an informed decision that gives you both savings and security.
Get Quotes from Multiple Providers
The first rule of smart insurance shopping is to never take the first offer you see. Prices for the exact same coverage can vary dramatically from one company to another, so it’s always a good idea to get at least three different quotes. This gives you a clear picture of the market and a solid baseline for what you should be paying. While it’s tempting to jump on the lowest number, remember that price is only one part of the equation. A great rate from an unreliable company isn’t a great deal. This process helps you find the sweet spot between cost and quality, ensuring you get the best value for your money.
Compare Apples to Apples
When you have your quotes in hand, it’s crucial to make sure you’re comparing them fairly. A lower premium might look appealing, but it could be because that policy offers lower liability limits, a higher deductible, or fewer protections. To get a true comparison, line up the quotes and check that the core components are identical. Look at the coverage types (like liability, collision, and comprehensive), the coverage limits (the maximum amount the insurer will pay), and the deductibles (what you pay out-of-pocket). Only when these details match can you accurately compare the costs and see which company is truly offering a better price for the same level of protection.
Check the Insurer’s Reputation and Stability
An insurance policy is a promise that a company will be there to help you during a difficult time. That’s why a company’s reputation for customer service and financial stability is so important. Before you switch, do a little research. Look up customer satisfaction ratings on sites like J.D. Power and check for financial strength ratings from agencies like A.M. Best. A strong rating is a good indicator that the company has a history of paying claims fairly and promptly. This step gives you peace of mind, knowing that the company you choose is not only affordable but also dependable when it matters most.
Read the Fine Print: Policy Details Matter
Beyond the main coverage types and limits, the small details hidden in the policy documents can make a big difference. Two policies that look similar at first glance might have different terms for things like rental car reimbursement, roadside assistance, or coverage for custom parts and equipment. One might offer accident forgiveness while another doesn’t. Take a moment to review these extra features and exclusions. Understanding the fine print ensures there are no surprises down the road and helps you choose a policy that truly fits your needs. If the jargon gets confusing, that’s a perfect time to talk with an insurance expert who can translate it for you.
How Your Car Can Save You Money
Believe it or not, the car sitting in your driveway is more than just a way to get around—it’s a tool that can help you lower your insurance premiums. From the model you choose to the way you care for it, your vehicle plays a huge role in what you pay each month. By making a few strategic choices about your car, you can directly influence your rates and keep more money in your pocket.
Choose a Car That’s Cheaper to Insure
Before you even sign the paperwork for a new car, you have a chance to save on insurance. Some cars simply cost less to insure than others. Insurers look at factors like a vehicle’s safety record, the average cost of repairs, and how often a particular model is stolen. Cars with high safety ratings and lower repair costs typically come with lower premiums. It’s a smart move to research insurance rates for the different models you’re considering. A few minutes of research upfront can lead to significant savings over the life of your policy.
Install Safety and Anti-Theft Devices
Insurance is all about managing risk, so the safer your car is, the less you’ll pay. Equipping your vehicle with modern safety enhancements like anti-lock brakes, airbags, and daytime running lights can earn you a nice discount. The same goes for anti-theft devices, from car alarms to tracking systems. These features reduce the chances of accidents, injuries, and theft, which means less risk for the insurance company. In return, they pass those savings on to you. Check with your insurer to see which features qualify for a discount—you might already have some without realizing it.
Maintain and Store Your Vehicle Properly
How you care for your car day-to-day also matters. Regular maintenance, like checking your brakes and tires, keeps your car in safe working order and reduces the risk of an accident caused by mechanical failure. Where you park it at night makes a difference, too. Storing your car in a secure garage overnight instead of on the street can lower the odds of theft or vandalism. These simple habits show your insurer that you’re a responsible owner, which can be reflected in your premium. It’s a win-win: your car stays in great shape, and you save money.
Manage Your Policy and Payments for Big Savings
Think of your car insurance policy as a living document, not something you just set and forget. How you manage it from year to year can have a surprisingly big impact on what you pay. It’s not just about finding the lowest quote once; it’s about actively maintaining your policy to ensure it always fits your life and your budget. A few smart habits—like choosing the right payment schedule, scheduling regular check-ins, and staying in contact with your agent—can uncover savings you might be missing out on. By being proactive, you put yourself in the driver’s seat of your insurance costs. Let’s walk through a few simple strategies that can lead to significant savings over the long haul.
Pay Annually to Save on Fees
If your budget allows, paying your entire year’s premium in one lump sum is one of the easiest ways to lower your bill. Many insurance companies offer a small discount for paying in full because it saves them the administrative hassle of processing monthly payments. It also eliminates the risk of a missed payment that could cause your policy to lapse. While monthly payments are convenient, they often come with small installment fees that add up over 12 months. Ask your agent if a pay-in-full discount is available—it’s a straightforward switch that could save you money without changing your coverage at all.
Review and Update Your Policy Regularly
Your life isn’t static, and your insurance policy shouldn’t be either. Did you get a new job with a much shorter commute? Did you recently get married or buy a home? Life events like these can directly impact your insurance rates, often in your favor. That’s why it’s a great idea to review your auto insurance policy at least once a year. A quick call with your agent can ensure your coverage still makes sense for your situation, that you have the right liability limits, and that you’re not paying for extras you no longer need. This annual check-up is the perfect time to confirm you’re getting every discount you qualify for.
Avoid Lapses in Coverage
Allowing your car insurance to lapse—meaning you have a period of time without any coverage—is one of the biggest mistakes you can make. Not only is it illegal to drive without insurance in Illinois, but a lapse in coverage also sends a red flag to insurers. When you go to buy a new policy, companies will see you as a higher-risk customer and will likely charge you a much higher premium. To avoid this, always have a new policy in place before your old one expires, even if you’re switching companies. Maintaining continuous coverage shows insurers you’re a responsible driver, which helps keep your rates down.
Build a Relationship with Your Insurer
When you have a question or need to make a change, it helps to have a real person you can call. Building a relationship with a local insurance expert means you have an advocate who understands your specific needs right here in the Springfield or East Peoria area. Instead of navigating a call center, you can work with someone who knows your history and can proactively find you the right discounts. At Feld Insurance, we believe in this partnership. We’re here to provide trusted guidance and help you find the perfect balance of protection and price, so you can feel confident in your coverage.
Car Insurance Myths That Cost You Money
When it comes to car insurance, what you don’t know can cost you. There are plenty of old wives’ tales and misconceptions floating around that might lead you to pay more than you need to. Let’s clear the air and debunk a few of the most common myths so you can make smarter decisions about your coverage and keep more money in your pocket. Believing these myths can mean leaving real savings on the table, so it pays to know the facts.
Myth: Discounts Are Always Applied Automatically
It would be great if every available discount just showed up on your policy, but that’s rarely how it works. Insurance companies offer a wide variety of ways to save, from good student discounts to savings for having safety features or bundling policies. However, they often don’t know if you qualify unless you tell them. It’s always a good idea to proactively ask your insurance agent what discounts you might be eligible for. You could be missing out on savings simply because you never asked. A quick annual review of your policy and potential discounts is a simple step that can lead to significant savings.
Myth: A Higher Deductible Always Saves You Money
This one is only half-true. Raising your deductible—the amount you pay out-of-pocket before your insurance kicks in—will lower your premium. In fact, the Insurance Information Institute notes that increasing your deductible from $500 to $1,000 can save you 40% or more on your collision and comprehensive coverage costs. But this strategy only works if you can comfortably afford to pay that higher amount if you need to file a claim. If a $1,000 out-of-pocket expense would be a major financial strain, the lower monthly premium might not be worth the risk. The key is to find a balance that protects both your car and your budget.
Myth: A Bad Credit Score Won’t Affect Your Rate
This can be a sensitive topic, but it’s a factor you should be aware of. Many insurance providers use a credit-based insurance score when calculating your premium. It’s not the same as your regular credit score, but it is derived from your credit history. Why? Statistical data shows that people with better credit tend to file fewer claims. While your driving record is still the most important factor, your credit history is one of the many variables that can influence your rate. Working to improve your credit can be a great long-term strategy for lowering your insurance costs over time.
Myth: Red Cars Are More Expensive to Insure
Let’s put this colorful myth to rest for good. The color of your car has absolutely no impact on your insurance premium. Insurers are interested in your car’s make, model, year, body type, engine size, and sticker price. They also look at data on how often that specific model is stolen, its repair costs, and its safety record. A sensible four-door sedan will almost always be cheaper to insure than a high-powered sports car, regardless of whether it’s painted bright red or a muted gray. So go ahead and choose the car in the color you love without worrying about your insurance bill.
Let’s Find Your Best Rate Together
Finding the right car insurance can feel like a puzzle, but you don’t have to solve it alone. The secret isn’t just about finding the lowest price; it’s about finding the right coverage that fits your life and your budget. With a little strategy and the right partner, you can get a policy that gives you genuine peace of mind without overpaying. Let’s walk through how we can make that happen for you.
Get a Policy Tailored for You in Springfield and East Peoria
Your insurance needs are as unique as you are, and a generic policy just won’t cut it. The best approach is to get coverage that’s built around your specific situation. One of the simplest ways to save is by bundling your policies. If you combine your car insurance with your home or renters insurance, you can often get a significant discount. It’s also worth looking into smaller adjustments that add up, like opting for paperless billing. These are just a few of the practical ways to lower your car insurance rate and get a plan that truly works for you here in our community.
Find the Right Balance of Price and Protection
When you start shopping for insurance, it’s tempting to just grab the cheapest quote you find. But price is only one part of the equation. To make a smart decision, you need to compare your options carefully. A good rule of thumb is to get at least three quotes and make sure you’re comparing apples to apples—that means looking at policies with the same coverage types, limits, and deductibles. This helps you see the true value you’re getting. Taking the time to compare ensures you find the right balance between an affordable premium and the solid protection you need if you ever have to file a claim. There are many ways to lower your auto insurance costs without sacrificing coverage.
Work with a Local Expert You Can Trust
Figuring out deductibles, coverage limits, and available discounts can be overwhelming. That’s where having a local expert on your side makes all the difference. We can help you find savings you might not have known about, like discounts for having a good driving record or installing safety features in your car. We’ll also walk you through your options, explaining how decisions like choosing a higher deductible can lower your monthly premium. Instead of guessing, you can feel confident you’re making the best choice. If you’re ready to find a policy that fits just right, let’s talk about your options.
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Frequently Asked Questions
How often should I review my car insurance policy? A great rule of thumb is to review your policy at least once a year, or whenever you have a major life change. Events like moving, getting married, or changing jobs can all impact your rate and the coverage you need. An annual check-in is the perfect time to make sure you’re still getting the best price and that your policy reflects your current life, not the one you had a year ago.
Will one speeding ticket really make my insurance go up? It certainly can, but the impact varies. A single, minor ticket might cause a small increase at your next renewal, while some insurers might even overlook it if you have an otherwise perfect record. However, a more serious violation or a pattern of tickets will almost always lead to a higher premium. The best strategy is to drive carefully, as a clean record is the most reliable way to keep your rates low over the long term.
Is it better to pay for a minor accident myself instead of filing a claim? This is a smart question to ask, and it often comes down to simple math. You’ll want to weigh the cost of the repairs against your deductible and the potential loss of a claims-free discount. If the damage is minor and costs less than or close to your deductible, paying out-of-pocket could save you from a rate increase at renewal. It’s always a good idea to call your agent to discuss the situation before making a final decision.
My car is old and paid off. What coverage can I safely drop? Once your car is paid off, you have more flexibility. The first coverages to evaluate are comprehensive and collision, which pay for damage to your own vehicle. If your car’s market value is low—for instance, less than 10 times what you pay for the coverage annually—it may no longer be financially worth it. You could be paying more in premiums than you would ever receive from a potential claim.
Why do quotes for the exact same coverage vary so much between companies? Each insurance company has its own unique formula for assessing risk. While they all look at similar factors like your driving record, car, and location, they weigh them differently. One company might be more forgiving of a past ticket, while another might offer a bigger discount for your specific car model or profession. This is precisely why shopping around and comparing quotes is so important—it’s the only way to find the company that views you as the lowest risk and offers the best rate.