Getting the best car insurance rates is important in a tight economy. The reason for the large variances in car insurance rates across the country is the huge number of different insurance providers. All these insurance companies are competing against one another to attract customers. It is the smart car insurance shoppers who end up with the best rates. Comparison shopping is a crucial part of finding the best affordable car insurance rates.
Determining Factors For Car Insurance Rates
Each state has a different set of laws and regulations. Shoppers need to locate the best affordable car insurance providers in their state and compare them to others from that state. The state you live in has a lot to do with what your car insurance rates will be.
Demographics plays a huge role in what car insurance rates will be. For example, younger drivers will generally pay higher rates than older drivers. Everything is ruled by statistics and the statistics reveal that young drivers have a much better chance of being involved in an accident than the older drivers. This puts them at higher risk and therefore at higher rates as well.
Jobs are also figured into car insurance rates. Some jobs require more travel than others. Logic dictates that the more miles a person drives the more probability of an accident. Higher mileage increases risk and the rates will follow suit.
Aside from the state you live in the area will also be a contributing factor. Some areas are considered more high risk than others. People who live in areas that have higher car repair costs or higher medical care or incidents of crime or accidents will have higher insurance rates. The insurance companies leave nothing out of the calculations.
Even you credit score is part of your rate calculation. Many car insurance companies still involve credit scores in their calculations in spite of the fact that newer legislation has cracked down on that practice. Still the insurance company likes to know if a person is dependable and pays their debts and if they have had any bankruptcies. This is a good indicator in regard to any future claims activities.
Having a good driver profile goes a long way toward getting cheaper insurance rates. Driving history is yet another key factor in the calculations. If your history shows you to have been a safe driver and are a low risk for filing any future claims then your rates will come down.
Personal consumer information is the next factor in insurance rates. This includes occupation, salary, age, and address. They are all considerations for insurance companies.
The kind of car you drive will play a part in your rates as well. The insurance companies will factor in the model of your car, what year it is, what the maintenance and repair costs are, and what security devices are installed on the car. Usually you can measure it like this – the more expensive your car is the more expensive your rates will be.
Ways To Drive Rates Down:
Even though all of the factors mentioned above will be part of the final insurance rates there are things people can do to bring the rates down a bit. An example would be to look into one of the pay-as-you-drive policies. They design these types of programs to fit with the driving lifestyle of the owner. The best thing about them is they are able to trump some of the other factors that you cannot change such as age. In essence, if you are a younger driver and have automatically received higher rates because of it, you may bring those rates down by driving safer. This means lowering the amount of miles you drive and avoiding speeding tickets and accidents.
A pay-as-you-drive policy will vary from one state to another and from one insurance company to another. Some states have requirements involving specially designed devices that will track how many miles you drive as well as your braking patterns and overall average speed. The information from these devices is directly transmitted to the insurance companies to determine the rates. Some programs are totally base on mileage alone.
Whenever you begin to compare different car insurance quotes you are sure to see a variety of rates that depend on what type of car you drive. That means you can get your rates down simply by making a different choice in what you drive. A car with lower maintenance and repair costs will also get you lower rates. Many people buy their cars without keeping this major factor in mind. Whenever people buy a car they need to figure in the total overall costs and that includes the insurance premiums, taxes, fees, repairs, fuel mileage, and anything else. Once all factors have been considered then a rational well-informed decision can be made about what car to purchase and which insurance provider to deal with in order to get the cheapest rates.
Tips To Keep In Mind When Comparing Car Insurance
One thing about car insurance is that it is mandatory. You cannot legally drive without it. That means you to get the best affordable rates you have to educate yourself on ways to get the rates you need. Here are some basic tips to keep in mind when shopping for your insurance-
• Do Your Comparison Shopping Online (faster, easier, cheaper rates)
• Keep Your Credit In Good Standing
• Maintain A Good Driving Record
• Get All Your Insurance Coverage From One Provider (cheaper)
• Choose The Proper Coverage
• Allow Higher Deductibles
• Stick With Yearly Policies
and always read the fine print for any hidden fees that may be attached.
Search Out Discount Car Insurance
Today there are all kinds of discounts in car insurance. They are great for helping consumer to keep their premiums low. It is amazing at how many people simply will not take the time to find them out and take advantage of them. They are there for the taking.
There are many different kinds of discounts such as-
(1). Good Student Discounts – If a student maintains good grades insurance companies reward them with discount rates. This is based on their belief that students who consistently make good grades will not only be smarter and make better decisions, but they will be studying more than driving. This lowers their risk for being involved in an accident.
(2). Group Discounts – This type of discount works similar to group insurance for many factories or companies where people work. Consumers can be members of an organization and get a group discount. They could be part of a credit union or some other group where these types of discounts are awarded. Not all insurance companies participate in these types of discount but many do.
(3). Financial Stability Discounts – You might have to do some searching to locate an insurance company that participates in these discounts. If you can find one they are a great help in lowering the premiums for policy holders. These discounts are awarded by providers to consumers who maintain good credit scores.
(4). Theft & Safety Devices – It is common practice for insurance companies today to offer discounts for safety devices and anti-theft equipment installed on cars. They like these precautions because it cuts down on the number of claims that are likely to be filed. That makes these devices a very good investment for car owners. They will eventually save more than enough on premiums for their one-time investment.
(5). Multi-Car Discounts – A consumer can save a significant amount on premiums with multiple-car discounts. It a person owns two or more vehicles that are placed under the same policy the premiums will be lower when compared to obtaining separate coverage on each vehicle individually.
(6). Defensive Driving Discount – Once drivers have left the ‘inexperienced’ demographic (after about 3 years) they will see their car insurance rates go down. It goes in the opposite direction for drivers over age 55 because they become more of a risk. However, these drivers can take a defensive driving course and have their premiums lowered by as much as 10% on a Defensive Driving Discount.
Getting Started finding Car Insurance Rates
Again the best place to find the cheapest premiums and best car insurance is online. The key is finding a comparison website and start getting quotes. There are many sites where you can get all the quotes you need from various providers in one stop. Then you compare policies and prices and find what best suits your needs and your budget.
A lot of times it helps to shop for the insurance before you buy the car so that if necessary you can downgrade a little to get the premiums you need. One good benefit to these comparison websites is that when you put in the zip code they will show you all available insurance companies in that area regardless of their size or reputation. Many times you can get a better deal from one of the smaller lesser-known insurance companies and not have to pay for a name. Everything you need to get the cheapest premiums possible is just a few clicks away.