Most motorists hear things about what they need to do to get cheap automobile insurance. However, what you hear from friends or colleagues may not be true. Also, there are a few myths you may get to believe after hearing several times. It is best to find out what is correct and what is hearsay. Accurate knowledge will help you save money and arrange the best coverage. Here are some of the things you should know about calculations, determinants and preferred drivers.
Premiums Can Differ Greatly from One Insurer to Another
For example, many people think that state ins. departments set rates and therefore it would be the same regardless of the provider. This is a totally false belief that can cost you hundreds of dollars every year. Each company determines own prices based on unique formula they use. The premiums can be as much as 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.
What Are the Factors Affecting Auto Insurance Rates?
Age, gender, cars, claims history, records, credit score, annual mileage, marital status, home address and profession are some of the key factors affecting quotes. These are not in the order of importance or carry the same weight. Some factors like age can be real important if you are below 25 years old. However, it may not make a huge difference between the age of 30 and 40.
Every company weigh 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 good several hundred dollars in the process.
Who Gets the Cheapest Vehicle Insurance Rates?
The best way of looking at it 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.
- 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 a policy first.
- Drivers with at least three years of no claim and traffic ticket 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. 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 real costly.
- Increasing deductibles can reduce the premium. This is one option if you want to increase protection but cannot afford it. You should play around with the figures and get estimates for different amounts.
- 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.
You need to qualify for several discounts if you want to get cheap car insurance quotes. 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.