| Factors That Affect Your Car Insurance Rates |
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| Written by Slade Tanner |
| Friday, 11 June 2010 18:16 |
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As car insurance gets more expensive and people have less money in a tight economy, more and more people are looking to shave off some expenses by shopping for lower auto insurance. However, in order to shop for car insurance you need an understanding of the factors that affect rates.
As car insurance gets more expensive and people have less money in a tight economy, more and more people are looking to shave off some expenses by shopping for lower auto insurance. However, in order to shop for car insurance you need an understanding of the factors that affect rates. Here are a some factors that determine your auto insurance rates: Your Age - Your age affects how much you pay in auto insurance. People under 25 will pay more than people over 25 because they tend to get into more accidents. They are more expensive to insure because of it. With all else equal, motorists in their 50's and 60's pay less in insurance because they get in fewer accidents than other age ranges. Your gender no longer plays a huge role in rates. More and more women are driving then in the past and they are just as big of a risk as men. Are you married? If so and with all else equal then you are probably paying less than your single friend. Married people tend to be safer drivers and have fewer accidents. Thus, they end paying less in insurance. City or Country? - Where you live plays a part in how much your insurance company charges you. Some locations are more prone to accidents than others. For example, if you drive daily in Chicago you will pay more than if you drove daily in rural Nebraska. Also, crime is less likely in a rural or country setting than a dense city. Driving Record - Are you a good driver? If your driving record is clean then you will get a discount on your rates. If you were an insurance company who would you rather insure? A person with 4 speeding tickets and three auto accidents or someone who has never received a speeding ticket or been in an accident? If you want to enjoy lower rates then drive more carefully and maintain a clean record. What kind of car do you drive? This will affect your insurance rates. Variables such as price, make, model, year, safety devices and mileage can increase or decrease your rates. Common sense will tell you that insuring a brand new corvette is going to cost more than insuring a 20 year Ford Mustang. Finding Cheaper Auto Insurance: Shop around to various companies before buying or renewing your auto policy. You can shop around several ways. One is to poke around on the internet, another is to contact your local insurance agent and finally you can call the 800 line of a major national carrier. Don't figure that all companies will charge you the same rates. You might find some large differences: There are many websites available where you can comparison shop by getting multiple quotes from various insurance companies. These are particularly useful. If you work better off of a personal relationship then contact your local insurance agent. They live in the same town as you and can give advice on the best auto policies. You might find it better to work with someone locally than a person on the other end of an 800 number. Also, if you ever have to file an insurance claim you might be better off dealing with a local insurance agent. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Slade Tanner - Auto Insurance in Tampa |