How to be insured on a budget?
Insurance is not cheap in the United States, to identify if you are overpaying for your insurance we created a short guide for insurance on a budget. As of 2017, the median wage in the United States was $44,564. In Washington DC, taking home $44,565 annually would put you in the 15% federal tax bracket and the 6% state bracket without any deductions. A single woman living in Washington DC, would have around $35,606.495 after taxes. We did a health insurance search for a single woman living in Washington DC. We found on average she would pay a monthly premium of $300 with a $6,000 deductible every year. That’s $9,600 every year on health insurance alone.
In the United States, the average American pays $1,500 for car insurance every year. After health and car insurance that leaves a single women in Washington DC with $24,506.50. After insurance and taxes, that’s $2,042.20 every month to live on and invest. When you add rent or a mortgage payment for your living arrangements in Washington DC, you’d be lucky to have any of that $2,042.20 leftover. If you are debating whether to save money on insurance because you are young and healthy, we strongly recommend you have insurance. It is important that you are finacially prepared in case of unforeseen events. A serious medical emergency could destroy your credit and leave you filing for bankruptcy.
Where can I find health and car insurance quotes?
VA Car Insurance can help you identify if you are overpaying on your insurance policies. We work strictly with independent insurance agents who create policies based on your needs. Independent insurance agents are the right choice when shopping for insurance because they have no financial incentive to sell you coverage you don’t need. Captive insurance agents are limited to the insurance products they can sell through legacy insurance agencies. Next time you are shopping for insurance, shop through an independent insurance agent so you can be quoted on all the policies on the market. For this insurance on a budget guide we choose to stick with just car insurance.
Reducing Car Insurance Premiums
- Pay your premiums every month
- Clean driving record
- High-grade point average
- Drive your vehicle less
- Take a driving course
- As you age, your premiums will be less
Pay your premiums every month
Paying your premiums on time every month is crucial to lowering your premiums every year. Do not assume that not paying your premium will be overlooked. An insurance premium is a bill, not paying your bill will be reported to the internal revenue system. Negatively affecting your credit score and raising your future premiums even if you switch insurance companies.
Clean driving record
The more traffic infractions you have, traffic tickets, unpaid fines, driving-related crimes the higher your premiums become. It’s all about how an insurance company can determine risk, and insurance companies have very low tolerance for risk. The cleaner you look on paper the lower your premiums become, as soon as unknown variables start to add up the insurance company raise your premiums. Until insurance companies can determine risk based on live environments data and have a large enough data set to weed out anomalies, your premium is how you look on paper.
High Grade Point Average
A high-grade point will help to reduce your monthly premiums, as some insurance companies offer discounts to “Good Student.” A high-grade point average does not determine a person’s overall intelligence or their driving ability. It does help motivate a student to do better in school, which can lead to entering a better college, and job after college. Having a better job after college, more money for the individual and less overall risk for the insurance company.
Drive your vehicles less
The more you drive your vehicle the more likely something will happen to your vehicle. The likelyhood that you are the atfault or the vicitim in an accident, speeding tickets, everytime you enter your vehicle theirs a risk associate to the insurance company that something could go wrong. Limiting the time spent, lowers the risk and that’s passed on to the policyholder.
Asking your insurance company if they offer an insurance discount if you take a driving course is one way to lower your monthly premiums. For teen drivers, and drivers that are labeled as high risk this is one way to lower with some insurance companies offering up to a 10% discount.Young drivers are considered high-risk drivers to insurance companies. As you, the driver continue to get older the risk you pose to an insurance agency starts to decrease.
There’s not much you can do about age, as we have no control over time, but if you lower the five other ways to reduce your premiums, as you get older your premiums will slowly decrease
Shopping for Insurance Quotes
Before you signup up with an insurance policy, you should shop multiple different quotes from different carriers. Compare the pros and cons of each policy, and take the best policy that fits into your budget. At VA Car Insurance, you work with one independent insurance agent. That one insurance agent has access to all the insurance carriers live rates and creates an insurance policy that fits your needs. The shopper only has to talk to one person either through email or phone.