Important Things you Should Know about Car Insurance Quotes : Aditorial

Have you ever wondered how insurance companies figure out your car insurance premium? Many factors go into the price they finally decide to charge you for the coverage you select. Understanding how they figure your rates can help you save money and know what to expect as you move forward with a policy. Here are some of the important factors that affect how much you pay for insurance:

What do they look at?

Insurance companies look at many things before quoting you a price for the policy you choose. Some of the things they consider include:

Age - The younger the driver, the higher the rates and those still under 25 years of age often pay more than drivers over the age of 25.
Gender - Female drivers still get cheaper insurance compared to male drivers, but the gap has closed over the past decade. Many European countries have decided its discriminatory to base rates on gender and the United States made a similar change that became effective recently (December 21, 2012) banning gender pricing.
Coverage Level Required - The more coverage you need, the more expensive your premium will be. Those requiring fully comprehensive insurance will pay more than drivers only requiring state minimum coverage will.
Your Place of Residence - Some areas are known for higher insurance premiums, while others carry smaller premiums. This is due to state laws and the risk of accidents in built-up areas compared to rural areas. The level of vehicle crime is another factor used.
Use of Vehicle - How you use your vehicle matters. If you use it for commuting, business and social reasons, you may pay more compared to someone using their vehicle only for commuting.
Your Driving Record - One of the major factors insurance companies look at before quoting you a price is your motor vehicle record. You can receive large discounts if you've gone many years without a claim or driving violation.
Your Deductible - A higher deductible usually means lower rates.
Credit Rating - Even though many legislators are fighting the use of an individual credit report to determine insurance rates, some companies use this as a factor.

How Your Vehicle Affects Your Premium

When you search for insurance quotes from different companies, such as 21st quotes for insurance, you will find that your vehicle makes a big difference. Here are the main four factors insurance companies look at when determining your rate based on your vehicle.

Value - Expensive vehicles are more expensive to insure because repairs, parts and labor are more expensive.
Safety Rating - Vehicles with a high safety rating may earn you a discount on your insurance because there's less change of injury during an accident.
Power - If you drive a sports car with a powerful engine, it will cost more compared to a small sedan with a smaller engine. A more powerful car is capable of higher speeds and is more likely to cause an accident than a smaller, less powerful vehicle.
Desirability - Some vehicles are more likely to be stolen than others are. If you own a vehicle considered at a higher risk of theft, you may pay more for insurance.

Understanding how your insurance is figured will help you to save money next time you decide to purchase a new or used vehicle. Keeping your driving record clean, driving a safe vehicle and choosing a higher deductible can help you save on your auto insurance. Of course, you still want to shop around and find the company offering the best coverage for the lowest rates.

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