How to find the cheapest car insurance

Car Tips | December 4th, 2008 by 23
Photo source: http://www.insuremybmw.co.uk/

Car insurance is a must for all of us that own a luxury vehicle and not only. Buying a BMW can be an exciting moment, …

Car insurance is a must for all of us that own a luxury vehicle and not only. Buying a BMW can be an exciting moment, but we always need to take in the consideration the cost of insurance, which on some cases, could be quite expensive. The cost of insurance is based on various factors, ranging from age or credit score to  driving record.

Add to the this equation the high-price of a BMW bought in a large urban area, and you will find yourself in a situation of paying a premium price. In some cases, insurance coverage could can be set to a minimum required by law, but if you lease or finance the car through BMW Financial Services, then it is mandatory to have a full coverage policy.
The insurance premium can be lowered by adding a deductible to your plan, $500 seems to be the most popular among among drivers. Of course, in a case of a claim, the deductible has to be met before the insurance company will issue a check or pay for the repairs.

As we mentioned earlier, having a good credit score and no negative payment history, will tremendously help you get the cheapest car insurance rates. Being a responsible driver with no prior speeding tickets or car accidents, will show the insurance companies that you’re trustworthy and there is a smaller chance to affect your insurance quote.

If you’re a student or under the age of 25, it is advisable to have yourself listed as a secondary driver on your parents insurance, either as a full-time or part-time driver. By doing so, the insurance costs can be reduced up to 50% in many cases. Having a cheap car insurance is the goal of every parent and this sometimes affects the car type purchased for the teenagers. Buying a brand new BMW, will increase exponentially their insurance rate.

Combine the BMW or Mercedes brand with a sporty model from their line, and the insurance premium goes through the roof. So, if you’re under the age of 25 and dying to own a fast BMW, I will stay away for a while from any //M cars.

When purchasing a car insurance and answering the questionnaire, do not overestimate the amount of miles you drive daily. Most of the car insurance companies will ask you what your daily commute is and based on that factor, you might see a slightly increase in the insurance premium.

If you’re a female, you will score a cheaper car insurance policy due to the “myth” that male drivers are more adventurous and accident prone.
Before we get into the insurance companies search, I would like to also give you a couple more tip to help you get a cheap car insurance: paying in advance your policy will help you save the interest paid on the monthly installments. Also, if you own two properties, in two different counties or cities within a state, I would suggest talking to your car insurance agent and determine which location gives you the best rate. Chicago City is known for having a bigger insurance premium when compared to an Illinois suburb, since factors like traffic, street parking or thieves are being considered less risky in a smaller city.

As far as car insurance companies, there are many many of them throughout U.S. Some of the most popular firms are: State Farm, All State, Geico, Progressive , Nationwide, Safeco or AAA. Alternatively, here is a website which provides a list of car insurance companies. I decided to use myself and my BMW 335i Sedan as an example or even better, a case study. Disclaimer: Not all the information I entered reflect exactly my personal situation, but the most important factors do.
Here is the input that I entered equally in all the websites:

  1. 2008 BMW 335i Sedan brand new
  2. Used for personal and work commute
  3. Miles driven daily one way: 10
  4. Location: Chicago
  5. Marital Status: Single
  6. Driver License obtained at age 18
  7. No accidents or violations in the last 5 years
  8. Home: Own
  9. Car: Lease
  10. Currently have car insurance – 5 years+
  11. Policy: $100,000 person /$300,000 accident /$100,000 property damage

So, here is my output and the cheapest car insurance, full coverage:

  1. Geico $153.85/month or $899.10/ 6 months
  2. StateFarm $176/month or $1002/ 6 months
  3. AllState $1,195/ 6 months
  4. Progressive $280.73/month or $1575/ 6 months

It seems like Geico keeps up with their reputation of saving money instantly and in this case, it’s cheapest car insurance I could find for my BMW 335i. But please keep in mind, there are many other factors that need to be taken in consideration when requesting an insurance quote and each one of them can influence the numbers one way or another.
In conclusion, always shop around for the best price, do your research online, call multiple insurance agents and don’t hesitate to let them know if you have seen a better deal somewhere.
Stay safe!
[ Photo Source: Insuremybmw.co.uk ]

  • photohunts

    What about group insurance? They can reduce insurance costs especially if you own more than one car and have more than one driver.

  • clara

    Good stuff.

    Also, Progressive now has a pay-to-pay plan with a device that plugs into your ECU and broadcasts telemetry over GPRS. It factors in acceleration, braking, distance, time of day, etc. Supposedly, if you are a safe drive, drive less frequently or drive during off-peak hours, you can save up to 50% or so.

    This would probably not help anyone on this blog due to the driving style factor, but… it seemed interesting :).

  • http://www.bmwblog.com Horatiu B.

    @clara: Interesting, I had no idea, but I’m not an expert in car insurance either :)
    @photohunts: Good point, I was mostly focusing on having a single car, but I agree, I have multiple cars in the household and they insurance definitely gets cheaper

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    I had a friend tell me how he saved money on car insurance, so I took his advice and ended up saving over 60%! Well i thought I drop a tip for people who are looking to save money on car insurance as well, heres the site I used: http://www.discount-auto-insurance-rates.info

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