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Determining Auto Insurance Rates
Getting auto insurance quotes can be confusing because every car insurance provider offers a different rate for policies that are similar or even exactly the same. Auto insurance providers all have their own formula for determining the rate they offer you for an auto insurance policy, but most look at similar sets of criteria. To break it down to the most basic level the five most important criteria determining your auto insurance rate are the type of coverage in the policy, your personal statistics, your driving record, the type of car being insured and your location.
Coverage
The type of auto insurance policy has the most direct effect on your car insurance rate. A bare-bones auto insurance policy with minimal liability coverage required by your state is going to be much less expensive than a policy with comprehensive coverage. Your deductible has a similar effect. A higher deductible amount reduces the cost of your auto insurance premium. Of course you’ll have higher out-of-pocket expenses in the event of a claim.
Personal statistics
Auto insurance providers take your personal statistics into account when setting your car insurance rate.
These statistics include personal data such as:
- Age
- Gender
- Marital status
- Credit score
- Occupation
- Education
Driving record
Your driving record is considered based on many factors. Previous accidents or driving violations such as a DWI will make your auto insurance rate higher. If you’ve recently taken any driving courses you might be eligible for a lower rate, and obvious a clean driving history helps you get the best auto insurance rate possible. How often you drive the insured car and how many miles you put on it each year can also factor into your auto insurance rate.
Type of car
This one is probably fairly obvious. A more expensive car will be more expensive to insure than a cheaper model. Vehicles with more safety features will be less expensive to insure. Auto insurance providers even take into consideration the cost of repairing the insured car. Another factor is the likelihood of theft of the make and model of the insured car.
Location
Your location will affect your auto insurance rate. Urban areas with more traffic and a higher crime rate will demand a higher auto insurance rate than areas with lower population density. If you live in a low crime area you’ll be rewarded with lower car insurance rates.
One step you can to lower your auto insurance rate is use the same auto insurance provider for every car you insure, and if that provider offers home or renters insurance you can often get a better deal by letting that insurance provider cover all your insurance needs.
Because of all these variables affecting car insurance rates it’s good to find a resource that allows you to compare auto insurance quotes to find the best deal for the coverage you want. An independent online resource where you can compare auto insurance quotes from a number of auto insurance providers is a great place to start.