How Are Insurance Premiums Set By Insurance Companies?

Share:    

Many US drivers would like to lower their bills

. One bill that they may be able to lower is their car insurance premium. If you pay attention to advertisements on TV or the Internet, it seems like every company says they offer the cheapest prices and best value. Can you really affect your auto insurance rates?

If you do take the time to compare car insurance prices, you will probably notice some rate differences between different companies. It is always a good idea to shop around. Some insurers offer programs for different types of customers, and it is important to find the company that can offer you the best deal.

Of course, you may find cheaper prices if you qualify for policy discounts. When you take the time to compare different companies, you may uncover these. For example, some insurers offer a discount for low mileage drivers. Others offer discounts if you bundle multiple policies with the same company. If you combine your homeowners insurance and auto insurance with one insurer, you may get a discounted price.

While I always encourage vehicle owners to shop around, it is probably not the most important thing you can do to change your policy rates. The largest factor that probably affects your own premiums is your age and driving record. Even though you may be able to find some price differences if you shop around, you will probably not get the best rates if you have had multiple accidents or traffic tickets recently. Young drivers will never get the best rates either. Accidents, traffic tickets, or just being young, put you in a high risk group, and risky drivers always cost more to insure.

Is there anything that you can do to lower your rates besides avoiding traffic tickets, accidents, and growing older? Auto insurance companies consider many things when they set prices.

These days, many large insurers even take credit scores into account. Auto insurance companies have figured out that more claims get generated by people with poor credit scores. This may seem surprising, and it may even seem a little unfair. But insurance companies have won the right to consider credit scores. If you have credit issues, you should work to improve your scores. In the meantime, you might look for a company that does concentrate on this risk factor.

The type of car you drive matters. Anti-theft devices and safety features can also earn a discount on your rates. If you are shopping for another vehicle, you should consider the cost of car insurance. The cost of insurer your vehicle can be a big percentage of the total cost of car ownership.

There are also some factors you cannot change. Gender matters, especially for younger and unmarried drivers. Insurers believe that young, unmarried men tend to make more claims. Your location has some affect on your rates as well. Insuers set rates by zip code. In general, a quiet rural area will be cheaper than a busy city.

How can you get cheap car insurance? There are some things you can do to lower your rates, and some things you just cannot control. A good driving record and the right insurer will have a big impact on your premiums.

by: Marilyn Katz

POST COMMENT

Bigfun | Powerful Pill | USA Sexy And hot Escort Service in Aerocity: Call Me: 8126914136 Camping In Rishikesh To Get The Information of Biman Bangladesh Airlines Office in Dhaka How Are Insurance Premiums Set By Insurance Companies? Pay for Only What You Use The Insured's Duty Of Disclosure Of Limits On Subrogation Tadarise 20 Mg | To continue having sex Cenforce 200 USA: A Powerful Solution for Erectile Dysfunction Cenforce 150mg uses Cenforce 150mg uses The Charm of a Handmade Gifts Shop Become Mr. Right Review - A Closer Look On David Deangelo's Famed Dvd