Most motorists hear about the things they need to do to get cheap automobile insurance rates but never take them seriously or take action. Often there are at least a couple of discounts they can qualify for and some of these chances can be as simple as sparing an hour to check for current prices in the market. Here are some of the things auto owners should know about premium calculations, influential factors and preferred drivers to make the most of savings they can have.
Premiums can differ greatly from one vehicle insurer to the other. For example, many people think that state insurance departments set rates and therefore it would be the same regardless of the provider. This hardly affects their ability to set their own rates. The premiums can be as much as a couple of thousand dollars different in some cases. So, never accept the first quote offered. Shop around carefully until you are fully satisfied with the costs and coverage.
Some of the key factors affecting car insurance quotes are age, gender, cars, claims history, records, credit score, annual mileage, marital status, home address and profession. These are not in the order of importance or carry the same weight. Some factors like age can be really important if you are below 25 years old. However, it may not make much of a difference between the age of 30 and 40.
Every company weighs each factor differently. For example, one may place extra emphasis on credit score while the other would care more about claims history. Just because you got a high premium from one of them does not mean that you should keep paying it. There are many others to check with before making your mind. Remember, you may save a good several hundred dollars in the process.
The best way of finding out who gets the cheapest vehicle insurance rates is to make a comparison as below. What you pay is a meaningless figure on its own unless you look at averages and other people in the same age group, gender, zip code or risk category.
- Ladies generally get lower prices than the gentlemen.
- Motorists get considerable reductions when they reach the age of 25. So, youngsters would need to gain some experience before they can claim the highest discounts.
- Motorists who are between age 50 – 65 can get the cheapest automobile insurance rates in their lives. And rates start going up again after age 70.
- Keeping continuous coverage keeps rates low.
- Drivers with safe cars pay a lot less than the ones with sports cars and older models. If you are planning to buy a Porsche for a teenage child check if you can get insurance first.
- Drivers with at least three years of no claim and traffic tickets can get considerable discounts. One claim can wipe away these savings. Second and third accidents in one year can make it difficult to find an interested carrier. It would not certainly be cheap.
- Motorists who live in city centers spend a lot more than country folks on car insurance. This could be several times more in some areas. Adding the cost of parking and unavailability of it, owning cars in the metropolitan centers can be really costly.
- Having a good credit score can help you save on policies, mortgages and loans and even let you get the apartment you like.
- Traffic moving violations are seen by auto insurers and affect rates considerably. Most companies may refuse coverage if you have a DUI.
- Motorists who actively check and make sure they are getting the best auto insurance rates can enjoy the savings, while people staying loyal ruin their chances of even finding these deals.
You need to qualify for several discounts if you want to get cheap auto insurance rates. If you ignore these points you can end up paying high premiums for the choices you made in your driving life. Also, always compare alternatives to see how you fare.