Having multiple drivers in a household can be a nightmare when it comes to paying for auto insurance costs. However, it doesn't have to be that way; there are a few things you can do to minimize the costs. Start with these four measures:
Compare Single-Car and Multi-Car Policies
It may be possible to save money by buying multi-car insurance coverage instead of covering each of your car's individually. Most insurance companies extend multi-car insurance discounts to their clients; after all, you are giving them more business. However, it isn't an automatic means to savings because the insurance company must consider your household's combined risks.
However, there are a few cases in which a combined policy may cost you more than individual policies. For example, if you have an extremely high-risk driver in your household, including them (assuming the insurance company is receptive to the idea) in your multi-car policy may drive your rates through the roof.
Buy a Minivan
Having a single minivan for the whole family will be cheaper (for insurance purposes) than letting every member of the household have their own car, and there are several reasons for this. For example, using one vehicle for a family vacation (or anytime several individuals are going in one direction) would lower your annual mileage, which is one of the factors used in calculating insurance rates. Secondly, insurers also know that minivans are mostly driven by parents, and parents are generally careful drivers.
Carpool When Going on the Same Trip
Having a family van may not be practical for most people; so, it's okay to have multiple cars in your household. However, this doesn't mean that every person should use their cars all the time. You can minimize your overall mileage by carpooling each time more than one of you is going in the same direction or errand.
Choose Primary Drivers Carefully
Auto insurance rates are determined by multiple factors; there is no single factor that determines the final rate. Therefore, when a driver has two high-risk factors attributed to them, they risk facing higher rates than other drivers. For example, being young is already considered a high-risk and driving a sports car is also another risk; driving a sports car at a young age, therefore, is an extremely high risk in the eyes of auto insurers. Therefore, if you have a young driver in the family, it makes sense to pair them with a low-risk car. That way they will escape the compounding effect of multiple risks.
For more information, contact companies like Allstar Insurance.Share