There are some things that auto insurance companies would rather their policyholders not know about. These “secrets” can not only help you save money, they can protect you from being taken advantage of by your insurer. A major part about being a smart consumer is to educate yourself on the product you are buying so that you make the right decisions. Continue reading below to learn about some auto insurance secrets that insurance companies know about, but the average consumer does not.

You Don’t Always Need to Add a Teen Driver to your Car Insurance Policy

Adding a teen driver to your car insurance policy can be extremely expensive. However, it doesn’t have to be expensive. In fact, in many states, you don’t need to add a teen driver to your insurance policy at all. If your teenage child is living at home and has a learner’s permit (not a full license), then he or she can drive your vehicle without making any modifications to your car insurance. You still have to abide by the rules of your learner’s permit (like having an adult in the vehicle at all times), but you don’t have to pay exorbitant teenage car insurance costs.

“Leave Out” Your Past Mistakes

We aren’t exactly telling you to lie to the insurance company, but if they ever ask if you have been in accidents or have gotten any speeding tickets, simply say no (even if you have). A lot of times, these tickets and accidents have already been removed from your permanent record (due to the statute of limitations or other reasons). If you “bring them up” again, the insurance company could magically put them back on your record and charge you more money. Remember, when it comes to information that could increase your premiums, less is more.

Don’t Assume Any One Company is the Cheapest

Some companies spend a lot of money on commercials that try to convince you they offer the lowest car insurance rates. But prices that different people pay for the same coverage by the same company can vary widely. No single insurer can claim to be the low-price leader for everyone. The insurance company that’s cheapest for one person in one place might be the most expensive option for a driver in another state.

On a similar note, sticking around for years and years with the same company is the worst thing you can do. In fact, it’s more or less like throwing money down the toilet because most insurance companies offer great rates only for the first 6-12 months. After that, they increase the rates substantially, sometimes by as much as 15-20% per year because they know that most people will not notice the increase or accept their renewal rate for the convenience and won’t shop around before the renewal date. According to a new research study, Americans overpay on car insurance by an estimated $21 billion per year simply because most people assume that the longer they stay with their  insurance company, the better their rates will be, which is complete opposite of what really happens.