Affordable Auto Insurance

Car or auto insurance is a necessity in this day and age, however, it can be extremely difficult to find affordable auto insurance. There are various factors that will influence the overall cost of auto insurance, and these factors will typically relate to the amount of risk that an insurance company believes they have to take.

The factors that may affect the price of your auto insurance include:

  • Where you live - you will generally find that auto insurance rates are more expensive if you live in a large city that typically has higher traffic volumes. The likelihood of collisions and accidents is far higher.
  • The car you drive - there are various statistics that show that certain types of car are more likely to be involved in an accident. Insurance companies are aware of the statistics and will set higher rates for certain cars.
  • Your driving record - this is fairly obvious, as if you are somebody has a history of poor driving that may include certain violations or speeding tickets you are far more likely to be viewed as a high-risk by an insurance company.
  • How much you drive - the more you drive, the higher the likelihood that you may eventually be involved in an accident. Therefore, occasional drivers are likely to have far lower auto insurance premiums.
  • The insurance company you choose - it is a good idea to shop around prior to purchasing auto insurance. Different insurance companies will offer different types of cover, and you should find an auto insurance policy that is most suited to you.
  • How old you are - young drivers are statistically more likely to be involved in an accident. The vast majority of insurance companies will closely follow statistics, and therefore this may affect your overall insurance premium.
  • Your credit history - this is a fairly new factor in determining the rate at which auto insurance will be charged. The vast majority of people are unsure of how relevant their credit history is to purchasing auto insurance. However, many insurance companies feel that somebody with a poor credit history is more likely to file a false claim.
  • Your gender - women will typically be offered lower auto insurance rates than their male counterparts. This is especially true of young males. Men are said to be far more aggressive at the wheel, and therefore more likely to have an accident. It is also believed that men are more easily distracted while driving, they are likely to have far more powerful cars, and will typically drive more often and more miles.
  • Marital status - insurance companies believe that a married person with children will probably be more responsible while driving than a single person.
  • Past claims history - if you are filed numerous accident claims in the past, an insurance company will consider you to be a higher risk. This in turn will have a negative effect on your insurance premium.

There are also certain things that you can personally to ensure that your auto insurance is affordable. The most obvious is to drive carefully, and to avoid driving while under the influence of alcohol. You should also avoid letting your insurance policy lapse, as this is likely to attract a higher premium. There are also certain professions that are known to attract far more affordable auto insurance rates. A prime example of this will be a scientist will always be offered a lower premium than a business owner. You should also consider certain antitheft or theft deterrent devices such as an alarm system. If there is a lower risk to your car being stolen, then this will be reflected in your auto insurance premium.

There are various other ways to ensure you receive affordable auto insurance these include - paying your premiums yearly as opposed to monthly. Reducing your mileage will also ensure a lower premium. The type of car that you own will additionally have a dramatic effect on your insurance premium. If you own a car that is considered to have a high theft or bad crash rate, your premiums are likely to soar through the roof. If you are aged 50 years old or over, you should look to take advantage of the various discounts that are offered to drivers of your age. The way in which you pay your auto insurance premiums may also have an effect on the price you are charged. You will generally find that by using an electronic funds transfer to make payment will be far cheaper than a personal check or payment notice.

You may also wish to consider contacting an insurance agent or broker to discuss the numerous discounts that are available. Often we are unaware of certain discounts that we may be eligible for, and therefore it is considered a good practice to speak to a knowledgeable expert. Finally, you may consider getting all your insurances from the same company. Often if you have your car insurance, home insurance and auto insurance with one specific company they may be willing to offer you a sizable discount.

There Is 1 Comment So Far. »

  1. The driving record is a critical factor in finding a cheap car insurance rate. The insurance companies are smart!