Car Insurance Rates
There are a number of factors that impact car insurance rates. Insurance companies may be taking a considerable financial risk by insuring you. They want their risk to be as low as possible.
There are dozens of car insurance companies and they fill a variety of different market niches. To keep rates low, some insurance companies may only insure drivers with very good driving records and may drop drivers from coverage after only one accident. No matter what customers they are tareting, the insurer must be licensed to sell insurance in the state.
Some companies cater to high–risk drivers, offering policies with minimum liability protection and higher rates in light of the risk factors. BestCarInsuranceCompanies.net offers drivers the ability to compare car insurance rates from multiple reputable companies, allowing them to get the right amount of coverage at the best possible price.
How To Save Money on Car Insurance
Being a safe driver can save you a lot of money on your auto insurance premiums. Many insurance companies offer discounts to drivers which may include insuring more than one vehicle, accident–free driving, having a car alarm, using a wheel locking device, having airbags and for students with good grades among others. Reducing the amount of miles you drive can also save you money on your auto insurance rates.
Drivers may want to consider joining a car or vanpool or taking pubic transportation to work instead of driving. Rates for auto insurance policies vary greatly between companies. Some auto insurance companies offer much lower rates than others. Use BestCarInsuranceCompanies.net to compare rates from leading insurers, find your lowest quote, and save!
What Affects Your Rates
Generally speaking, the higher your risk as a driver, the more an insurance company will charge you for auto insurance. In evaluating your risk as a driver, the most important factors that companies consider are what kind of car you drive, where and how much you drive, your age, sex, and marital status, your driving record, and your credit history.
The age, make and model of the car you drive has a large impact on your insurance rate. Generally speaking, the newer and more expensive your vehicle is, the more you will pay to insure it. This is definitely something you should take into account when purchasing a new vehicle. Drivers of vehicles such as sports cars, may pay more for insurance than other comparably priced vehicle types. Your insurance rates may jump up hundreds of dollars a year when you purchase a new vehicle.
Where and How Much You Drive
Due to the higher rates of thefts, vandalism, and accidents, car insurance rates for drivers in urban areas tend to be higher than in small towns or rural areas. Also, the more you drive, the more you pay for insurance. This is because the more time you spend on the road, the greater your risk of having an accident. The average American driver drives about 12,000 miles per year. Drivers who use their car to travel long distances for work or who enjoy taking long road trips, pay more than those who drive less.
Your Age, Sex and Marital Status
Accident rates are higher for drivers under age twenty–five, especially for teen and single male drivers. This is why many rental car companies will not rent cars to persons under twenty–five years of age. Insurance prices in most states reflect the higher risk that young drivers pose. Once drivers reach the age of twenty–five, their insurance rates tend to drop. Studies also show that married drivers tend to have better driving records. This is reflected in insurance rates.
Driver’s Record and Credit History
Each reported traffic infraction, DUI or accident that a driver has goes on their driving record. Drivers who have traffic infractions, DUIs, and a history of at–fault accidents, pay more for insurance than those who have a clean record. Be sure to get a copy of your driver’s record to ensure that it is accurate. You could be paying hundreds of dollars more for insurance than you should be.
With respect to credit history, studies have shown that credit history is a powerful predictor of future auto accident claims. The lower your credit score, the greater the likelihood you will file a claim. Many insurance companies consider your credit score when determining your car insurance rates. Be sure to review your credit score and work to improve it as much as possible to get the best rates.