Auto Insurance Rates - 9 Factors That Determine Your Price
Auto insurance rates can be lowered by 50% or more if you will read this before buying auto insurance to determine what discounts you are eligible for and how to qualify for them which will enable you to lower the cost of your premiums by half.
The factors, which determine ratings for auto insurance vary, but there are many similarities in as much as they are all based upon claim histories.
Some of the factors are: 1.
The place where you garage your vehicle.
Insurance Companies want to know if your car is safe at night.
You are going to pay more for your auto insurance if you park your car on the street in a high crime area.
2.
The area where you do most of your driving.
Every state except California uses this as a rating factor because more accidents happen in urban areas than in rural ones.
3.
Your driving record.
It has been proven beyond a shadow of a doubt that people who accumulate traffic violations are more apt to have accidents that people with clean driving records.
If you have had traffic violations it would be a good idea to go to traffic school and have the points removed from your drivers license before you apply for a new car insurance policy.
4.
Your sex.
Since men tend to have more accidents than women, women get cheaper insurance rates.
Jimmy says this is not fair but there's nothing I can do about it.
5.
Your age.
If you are below the age of 25 or over the age of 75 insurance rates are going to be higher.
6.
Your history of insurance coverage.
Your new insurance company wants to know about your history with past insurance companies, how long you had insurance, what limits you have had put on you and the reason you left that company.
Sounds like a job interview.
7.
Your credit report.
Insurance companies have learned that a good credit rating is an indicator that that people will have less accidents.
8.
How many miles you drive per year.
This indicates exposure of the car to highway traffic.
9.
The make of the vehicle and the model.
You're going to pay a lot more for insurance if you have a brand new Corvette than if you drive a four-door sedan.
The rule of thumb is, the more money your car is worth, the more expensive the insurance is going to be.
10.
The type of insurance policy that you purchase.
The most expensive type of policy is a comprehensive insurance policy.
If your car is financed, the finance company will insist on this type of insurance to protect their investment in the event that your car is damaged.
Many times towing insurance, car rental insurance and other options are also added to this policy making it even more expensive.
11.
The least expensive type of policy is a straight liability policy.
This policy is available only to people who own a car which is not financed.
Having a liability policy instead of comprehensive insurance will save you 20% on the cost.
12.
The biggest factor in determining the cost of your car insurance is the amount of the deductible.
Most people will go with a $200 deductible or even a $500 deductible but the truth of the matter is if you will raise your deductible to $1000 per accident you will save 40% on the cost of your insurance.
Auto insurance rates are determined by a lot of different factors that are taken into consideration when you buy car insurance.
Some of these factors can be modified and some can't.
Take advantage of all the discounts you are eligible to receive and you will find yourself saving 50% or more on the cost of your automobile insurance.
The factors, which determine ratings for auto insurance vary, but there are many similarities in as much as they are all based upon claim histories.
Some of the factors are: 1.
The place where you garage your vehicle.
Insurance Companies want to know if your car is safe at night.
You are going to pay more for your auto insurance if you park your car on the street in a high crime area.
2.
The area where you do most of your driving.
Every state except California uses this as a rating factor because more accidents happen in urban areas than in rural ones.
3.
Your driving record.
It has been proven beyond a shadow of a doubt that people who accumulate traffic violations are more apt to have accidents that people with clean driving records.
If you have had traffic violations it would be a good idea to go to traffic school and have the points removed from your drivers license before you apply for a new car insurance policy.
4.
Your sex.
Since men tend to have more accidents than women, women get cheaper insurance rates.
Jimmy says this is not fair but there's nothing I can do about it.
5.
Your age.
If you are below the age of 25 or over the age of 75 insurance rates are going to be higher.
6.
Your history of insurance coverage.
Your new insurance company wants to know about your history with past insurance companies, how long you had insurance, what limits you have had put on you and the reason you left that company.
Sounds like a job interview.
7.
Your credit report.
Insurance companies have learned that a good credit rating is an indicator that that people will have less accidents.
8.
How many miles you drive per year.
This indicates exposure of the car to highway traffic.
9.
The make of the vehicle and the model.
You're going to pay a lot more for insurance if you have a brand new Corvette than if you drive a four-door sedan.
The rule of thumb is, the more money your car is worth, the more expensive the insurance is going to be.
10.
The type of insurance policy that you purchase.
The most expensive type of policy is a comprehensive insurance policy.
If your car is financed, the finance company will insist on this type of insurance to protect their investment in the event that your car is damaged.
Many times towing insurance, car rental insurance and other options are also added to this policy making it even more expensive.
11.
The least expensive type of policy is a straight liability policy.
This policy is available only to people who own a car which is not financed.
Having a liability policy instead of comprehensive insurance will save you 20% on the cost.
12.
The biggest factor in determining the cost of your car insurance is the amount of the deductible.
Most people will go with a $200 deductible or even a $500 deductible but the truth of the matter is if you will raise your deductible to $1000 per accident you will save 40% on the cost of your insurance.
Auto insurance rates are determined by a lot of different factors that are taken into consideration when you buy car insurance.
Some of these factors can be modified and some can't.
Take advantage of all the discounts you are eligible to receive and you will find yourself saving 50% or more on the cost of your automobile insurance.
