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.

Cheap Auto Insurance Rates

Reliable statistics say there is a car stolen every second, somewhere in the world. What would happen if tomorrow your car was to be stolen; what would happen to you? This is why auto insurance is such an important thing to have. Unfortunately, auto insurance can sometimes be very expensive. This has traditionally been a problem for people who do not have that much money. But thanks to modern-day cheap auto insurance, people can now carry affordable insurance and claim for compensation in the case of theft or accidents. Once you decide you will look for cheap auto insurance rates, it is time to go get to work, researching various insurance companies, their plans and their rates.

In some cases, the rates may be attractive, but you need to find out what your state’s requirements are and whether or not the whole policy match those requirements or not. Any licensed agent you speak with should be able to tell you these things if you speak with them, Remember, whenever you are comparing the rates of two insurers, the comparison should be between policies that offer the same coverage and protection. You are likely to make a better decision this way. Most cheap auto insurance policies offer deductibles. These deductibles are nothing but the amount which you would be responsible to pay before the insurance company provided any payments. This is one way an insurance company is able to offer cheap auto insurance rates. Choosing a policy with a higher deductible ensures that you get a better deal, as far as cheap auto insurance rates are concerned.

Find out from your insurer about the collision coverage they offer. The older your car, the less collision coverage it would require. Once you find out the insured declared value of your car from your insurer, you will also be able to get some idea about how much collision coverage you would need. Check out on other aspects, such as the premium to be paid, the policy period, and liability coverage, to mention only a few considerations.

You can always consult your friends, family members or colleagues, who have auto policies with these cheap auto insurance policies for advice regarding cheap auto insurance rates. Probably the best person to find out about these cheap auto insurance rates is your insurance advisor or agent. They will be able to give you a clear picture on the present rates available that suit your needs.

Learn the Secrets of Getting Cheaper Car Insurance Rates by Following These 4 Simple Rules

Maintaining an auto insurance policy that provides adequate protection is absolutely necessary, but overpaying for the coverage is definitely not. The good news is that it is quite possible to get cheaper car insurance rates by following some simple rules.

Shop Around for the Best Quotes

While most drivers are aware that they can save a substantial amount of money by shopping around for auto insurance, the simple truth is that many consumers view the process as very frustrating and time consuming. Few people realize that online car insurance comparison sites can help deliver multiple quotes and rates within just minutes. Filling out a short online form is often all that it takes to immediately have access to all of the pertinent information that should be used in selecting the best car insurance policy. The ease of use and speed of such a process makes it impossible for anybody to say that they simply do not have the time to fool with shopping around.

Take Advantage of Available Discounts

Many discounts are available to consumers and some of them will only be offered if an applicant knows that they are in fact eligible. Safe driving discounts are available for individuals that have not had any type of incidents or accidents within the last few years. Drivers that have completed some type of instructional classes or defensive driving training typically qualify for at least a 10-15% discount off of their auto insurance premiums. Some vehicles have safety equipment such as air bags and passive restrain systems that can also help qualify and individual for better auto insurance rates.

Bundle Multiple Policies with the Same Company

Most individuals have their insurance policies spread out amongst multiple companies, and what must be understood is that better rates are often available to loyal customers. While most people have retained a home owners insurance or renters insurance policy with the cheapest possible company, statistics reveal that even better rates can be achieved by bundling multiple products and policies with the same insurer.

Select Adequate Coverage Levels & Deductibles

There are plenty of different factors that go into the calculation of auto insurance rates, and it can be helpful for a consumer to learn more about the exact levels that they need. Although it would be a mistake to carry too little car insurance, it also is not wise to purchase too much protection. Every drivers situation is obviously somewhat different and individual needs are going to dictate the best levels of coverage. However, most people are not aware that a $500 deductible instead of a $250 deductible could mean cheaper car insurance rates. Consumers should seek the advice of an insurance professional if they are not sure what the various provisions cover and this is key to avoiding unnecessary protection and costs.

Auto insurance is mandatory in many states and is never a bad idea, but too many consumers are paying more than they need to. By following the above simple rules, cheaper car insurance rates are both possible and fairly easy to obtain.