How to Find Cheap Car Insurance Rates and Lower Your Premiums
In today’s busy world and shrinking economy, finding cheap car insurance that is below the national average for car insurance rates can be quite a daunting and tedious task. Affordable auto insurance rates are getting less and less “affordable” and more and more complicated and with higher premiums and deductibles. Obtaining affordable coverage used to be determined by the make, model and year of the car you drive and how clean your driving record is. These days, it is determined by many factors such as:
• Vehicle type.
• Marital status.
• Accident history.
• Driving record.
• Annual mileage.
• Credit score.
This is the formula used today by the self-proclaimed cheap car insurance companies that are attempting to determine if you would make for a high-risk customer that will cost them more money to insure, based on the national average claims rates. If they determine you fall into the higher than average percentile, your car insurance rate will be costlier with higher premiums and a higher deductible.
So What Does a Car Insurance Company Look for in their Ideal Customer?
In most cases, the best rated auto insurance companies will offer more affordable coverage to those who:
• Are female.
• Are over 25 years old.
• Are married.
• Drive an older, less expensive car.
• Drive a car with a good safety record.
• Live in a rural area.
• Have no chargeable accidents.
• Don’t have any moving violations.
• Meet insurance lower mileage standards for their state.
• Have a high credit score.
These are the customers that will get the lowest car insurance rate with lower premiums and deductibles for better coverage. They have statistically determined that drivers who fit into the above categories, cause fewer accidents which means they report fewer claims and thus cost less for them to insure. Something worth mentioning… Car insurance companies don’t weigh these factors equally. They care more about your driving record, age, and gender more than they care about the remaining factors, however, the remaining factors do play a vital role in determining the cost of your car insurance premiums and deductibles. It’s safe to say, if your credit rating leaves something left to be desired, there’s a good chance you will be paying more for your cars coverage. If you fall above average for your states low-mileage standards, you will most likely pay more. The variables are many and each car insurance company weighs these factors a little differently. You may be wondering…
…How Can I Lower My Car Insurance Rate to Get Cheaper Coverage?
If you’re shopping for a new car insurance company and find that your quotes are all higher than you can afford, there are a lot of things you can do in order to lower your premiums. Not all of the following will be possible for you but you can most likely accomplish a few of these goals to lower your coverage costs.
• Increase your deductibles.
• Lower your maximum coverage limits (be careful with this).
• Take a safe driving course.
• Maintain a high grade point average.
• Have the newest safety features in your car.
• Drive a vehicle with a good safety record.
• Improve your driving record.
• Have fewer accidents you caused.
• Move to a less urban location.
• Drive fewer kilometres.
• Raise your credit score.
Your insurance agent or insurance company may offer other ideas on how to achieve an affordable auto insurance rate.
Where Do I Go for a Car Insurance Comparison?
Overall, Car insurance companies are using the same formula to determine each customer’s, or potential customer’s, coverage costs. The main difference between them is in how they weigh the determining factors of each individual customer. The cost of premiums and deductibles can vary drastically depending on the company.
The best way to compare car insurance quotes is to go to a website that will pull quotes from multiple companies and allow you to do a side-by-side car insurance comparison. This will give you a better overall picture and will aide you in picking the best company for your needs and budget.