Getting Cheap Car Insurance: Factors that Affect Your Rates

Car insurance premiums are based on a large number of factors, some of which you can control, and some of which you cannot. Rates are based on statistical models that help determine the level of risk each insured person represents for the carrier. For example, statistically, a 17-year-old boy in a muscle car living in a big city is far more likely to hit something – or be hit by something – than a 35-year-old married mother-of-two driving a minivan around the suburbs.

The unfortunate thing is that some of the factors that affect your insurance rates just cannot be changed. That being said, there are things you can do to keep your  premiums as low as possible.

The following are some of the factors you CAN’T change that impact your rates:

1) Your age. Statistically, the oldest and the youngest drivers are far more likely to have accidents than the rest of us.

2) Gender. Statistically, women are safer drivers than their male counterparts. Sorry boys.

3) Marital Status. Statistically, married people generally have fewer accidents than their unmarried counterparts.

Some of the factors you can change that impact your rates are as follows:

1) Your driving record: Moving violations such as speeding, running red lights, “California stops”, etc… all count against you with your current carrier.

2) Geography: Where you live matters in what you pay for car insurance. People living in rural America are far less likely to have a collision or a vehicle to be stolen than those living in a city.

3) Your vehicle: Expensive luxury cars, fancy sports cars, less safe vehicles, all will probably ensure that your premiums will be higher. Want a lower premium? Go with a lower profile vehicle.

4) Credit rating: Many insurance companies view a poor credit history – or even no credit history – as potentially contributing to higher risk. So keep a good credit record and get lower premiums.

5) Accident claims: Keeping your record clean and free of accidents will help keep your premiums low.

6) Occupation: Car insurance companies have found a correlation between the occupation you may hold and higher levels of risk. Ask your insurance carrier if your occupation is making you pay higher premiums.

7) Multi-policy discounts: You can often get discounts if you have both your homeowner’s policy and your car policy with the same carrier.

There are other factors that go into determining premiums as well. Some of these are:

1) How many miles you drive per year
2) The distance to your work
3) How many years of driving experience you have
4) If you have some business use of the vehicle
5) Whether or not you currently have auto insurance
6) The inclusion of theft protection devices (often results in discounts)
7) Having multiple cars and drivers (another opportunity for discounts)
8) Having car safety features (still another discount opportunity)

Feeling confused?
It can be a bit overwhelming when trying to decide the best and most affordable car insurance coverage for your vehicle. Like anything else, get good advice and comparison shop. That’s the best way to make sure you are getting both quality… and cheap auto insurance.

Make sure you visit QualityAutoInsurance.com before you buy to find the best car insurance rate. There, you’ll be able to compare instant, online quotes from 15 top carriers, which will help you save time and money on your auto insurance.

Please note that this description/explanation is intended only as a guideline to help you with your insurance questions. For complete information about rates, premiums and risks, talk to your insurance carrier.