Car Insurance Rates

Many car owners avoid taking more auto insurance than the minimum level required by the state simply because of the exorbitant car insurance rates that they have to pay. Car insurance rates are made up of a base rate, after which an addition or reduction takes place, determined by a variety of reasons including those that are beyond the owners’ control.

Generally, an auto insurance company looks at the following aspects to decide on a suitable car insurance rate for each car owner:

Age: According to the US Department of Transportation, the probability of young drivers being involved in car accidents is four times higher than that of the elderly. Insurance companies take the view that young driver are more likely to speed, drink and drive, and not wear their seat belts. Families who have young drivers usually pay higher car insurance rates due to this additional risk.
Marital status: Insurance companies perceive marriage as a reliable sign of maturity and responsibility, causing car insurance rates to be lower.

Gender: This is another uncontrollable factor affecting car insurance rates. Although bordering on sex discrimination, state laws allow insurance companies to raise car insurance rates for men drivers. Based on car accident statistics, young men below the age of 30 are involved in a great number of accidents compared to women in the same age group.

Location / Neighborhood: The area in which owners live plays an important role. Places with higher probability of car thefts incur higher car insurance rates. Likewise for certain states which have high density traffic, such as New Jersey and New York.

The Car: The more expensive the car is, the more its owner will have to fork out in both collision and comprehensive insurance costs. Collision coverage pays for repair costs, and cars with expensive spare parts increase cost. In addition, more expensive cars are more likely to be stolen.

Amount of Driving: Driving more miles than the annual average increases the car’s exposure to damaging elements and risks of accidents or theft. As exposure increases, so does risk, leading to higher car insurance rates.

Driving and Claims History: Car insurance rates increase with the number of accidents and serious traffic violations a car owner has been involved in before. Besides this, an owner who regularly makes claims to insurance companies tends to have greater car insurance rates.

Credit History: Credit scores measure the types of credits taken, outstanding debt and reliability of past payments, among other things. If owners display stable credit scores over a long term and are able to keep their outstanding credit balances low, car insurance rates can be reduced as well.

It is important for car owners to shop around for the best car insurance rates with all the above factors in mind. Although owners cannot help the uncontrollable demographic factors like age and gender, they can still reduce car insurance rates by working on the controllable aspects like the type of car driven and credit history.

Comparing Cheap Car Insurance Companies – Where is the Best Place to Compare Car Insurance Quotes?

Q: How can I compare cheap car insurance companies? I really don’t want to spend a week trying to track down new auto insurance coverage, what would you recommend?

A: If we had a nickel for every time we were asked this we could get out of the car insurance business. Seriously though, the truth is, there are 3 ways to compare cheap car insurance quotes:

1. Getting on the phone
2. Getting a quote from a website
3. Visiting an agent in person.

As we have advised many drivers; obtaining auto insurance quotes online is your best bet because it is a major time saver and allows you to quickly find the best deal.

Shopping for automobile coverage online may seem intimidating to some who don’t have a lot of computer experience, but it’s actually very simple. Basically, you enter your zip code into a form and answer questions asked by providers right over your computer. That’s it!

Unfortunately, most drivers get lazy and don’t take the time to research different car insurance companies prior to making their decision. The result is, they pay a lot more for their car insurance than they have to. Don’t fall into this trap, spend the time to get online today and compare quotes on different policies from a variety of providers and you’ll end up saving money on your annual premiums.

Good luck with your search for cheap car insurance, there are some great deals out there from excellent companies — it just takes a little bit of research to find the best prices!

Car Insurance Rates – Why Do They Fluctuate?

When you buy the same car that your neighbor has but still pay more for your insurance, it is bound to leave you frustrated. However, you should know the different reasons as to why this happens. There are a lot of explanations for this phenomenon and an understanding of the same might perhaps help you figure out as to why you might end up paying more for your car insurance compared to the others. If you want to learn more about the reason car insurance rates vary from one place to another, you might want to continue reading and try to improve your rate somehow.

Credit history

An important reason for the insurance rate to waver would be because of your credit history. Hence, if you have skipped bills and not made payments on time, you are more likely to pay more for your car insurance compared to others. People with poor credit rating are much more likely to be having significantly higher car insurance rates compared to others. Hence, make sure that you take care of your finances and make all the payments on time to avoid getting penalized for this later on.

Driving record

If you are someone that has had too many accidents I the past, it is quite likely that you are going to be paying more for your car. Insurance companies view drivers with accidents in the recent past as risky individuals, which is why they are made to pay amongst the highest car insurance rates. If you want to be sure that you wouldn’t want to be in this group, then you should be more careful on the road and always obey the law. Getting too many tickets and violating the law while using your vehicle will all contribute to an increase in your insurance rates.

Gender and Marital status

You might find it hard to believe, but there are certain parameters that are true in your case which might be working against you when it comes to car insurance rates. These includes things like gender and marital status, both of which are used in determining how much money you might be coughing out for your insurance on a regular basis.

Men pay higher than women and divorced or single men always pay more than their married counterparts. These rates are based on statistical data available with insurance companies which indicate the kind of people that might end up paying more for the insurance than the others.

Hence, now that you have an idea about how insurance is computed, you might be in a better position to determine whether or not you are paying more for your car insurance. In most cases, it might be easily determinable by just getting multiple quotes. However, at other times, you might have to do a little bit of research before knowing for sure about whether or not your rates are the best in the market. If for some reason you feel that your car insurance rates and cheap car insurance are higher than normal, you should consider switching and opting for insurance coverage from some other company.

Car Insurance Rates – The Best For Less

The cost of your car insurance policy is not an indication of its quality. Although you can’t get the best without paying for it, you can pay a lot more than you should for an insurance policy. What if there’s a way for you to get your present insurance coverage for less? Read through carefully to see how you can save on car insurance.

Anybody who likes shopping knows that it’s the way to get great deals on anything. It makes no difference whether you want to buy a house or get a contractor to help you fix a few things. The difference, however, is that while the margin in many things could be low, in car insurance you can save over $2,000 depending on how you shop, what you shop for and what your profile is.

Why is this so? Insurance companies use certain factors to determine a person’s risk. However, they all have different views of how much each of these factors indicate a person’s risk level. What an insurance company calculates as the risk involved in insuring you is what determines your rates.

Therefore if you check with five different insurers, you’ll get 5 different quotes for the same profile and policy. Differences in rates could be as small as $50 or as much as $2,700!

This means that if you know how to shop and where to shop for quotes you can get as much as 50% or more off your current auto insurance costs. This can be a time-consuming process if you attempt to do it by calling up different insurance agents and getting quotes from them.

Thankfully all you have to do now is visit specialized sites for your quotes. These sites ask for simple details that will help determine your profile and desired coverage. You’ll be done with each site in around five minutes and for that you’ll have up to five quotes if you use certain quotes sites.

If you want to save much more then you have to do more: Visit more of such sites. The reason is that doing this will make you get more quotes thereby reducing the odds that you’ll miss out a great offer not presented on any of the other sites.

If this will take you a total of between 30 minutes and one hour isn’t it worth it even if you only save a few hundred dollars?

But what if your profile and policy are such that might attract savings of over $1,000? A young man saved $2,644!