When shopping for insurance it is always wise to compare multiple auto insurance quotes from many different companies. You will want to compare rates from at least five or six different companies to make sure you are getting the policy that is right for you at the best price possible. But how do companies determine the quotes that they give you?
Insurance companies look at a variety of factors before determining the quote they will give you. Here are some of the main things affecting the price of your auto insurance policy.
Factors Affecting Your Auto Insurance Quotes
1.Your Age: Younger, less experienced drivers and also very elderly drivers are more expensive to insure.
2.Your Gender: Female drivers are less expensive to insure then male drivers.
3.Your Location: Where you live will also affect the price you pay for auto insurance. Not only do different states cost more in terms of insurance than others, but people living in rural areas most often pay less for car insurance than those living in a more urban area.
4.Your Vehicle: The vehicle you drive makes a big difference in terms of cost of insurance. Cars that insurance companies deem more likely to be stolen and cars that are expensive to repair will cost more to insure.
5.Your Credit Score: Many insurance companies will look at your credit score when determining the quote they will give you for car insurance. Insurance companies look at people with lower credit scores as higher risk and therefore assign hem higher rates.
6.Your Driving Record: Auto insurance providers will of course check your driving record to help determine what you will pay for insurance. If you have a history of tickets and traffic violations it will affect you quote.
7.Your Claims History: The company will also want to know what claims you have made in the past. If you a history of making claims it will affect your rates.
What Can You Do to Lower Your Car Insurance Quotes?
Obviously many of these factors are beyond your control. However, there are some things you can do to pay less for car insurance. When buying a vehicle, consider what it will cost you in insurance.
Another thing you can do is work on lowering your credit score. Pay your bills on time, avoid opening unnecessary lines of credit and start paying off your debt and you could raise your credit score and lower your auto insurance premiums.
Also, start being a safer driver. While you cannot change your driving record, you can avoid future tickets and driving violations.
Comparing multiple quotes before buying car insurance is another way to save money. If you already have a car insurance policy, it is a good idea to compare quotes every six months or so as car insurance rates from various companies can change dramatically over time. |
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