subject: Understand The Best Way to Cheap Car Insurance Rates [print this page] Understand The Best Way to Cheap Car Insurance Rates
Understand The Best Way to Cheap Car Insurance Rates .Almost all new car owners and possibly many seasoned car owners may not be aware of the factors that affect your car insurance rates and premiums. However, premiums are calculated based on perceived risks, variables and many other factors. To way to cheap car insurance rates and premiums will mean you, as a car owner, must know of these factors and work around them to your benefit.
Driving History
The car insurance company will review your driving records and history, and determine whether you are a good or risky customer. It will review your traffic violations, if any and the type of car insurance claims you have made previously. If there are issues identified to your detriment then you will likely be charged higher car insurance rates. However, they will usually review history of up to three years. If you have a major claim say five years ago, you can likely put this history aside.
Insurance Record History
The insurance company will also review your car insurance history with other current or previous insurance companies. This background search is to decide whether you make a good customer or a risky one. If they deem your risk to be too high, they can also choose to reject covering your car. Otherwise, they may offer much higher premiums than usual, in order for the insurer to cover their perceived risk. So, do not assume that by "insurance hopping", your car insurance rates will not be affected even with poor claim history. Word and information will spread within the car insurance market after all.
Location
Where you are located may affect the premiums you have to pay. A highly populated area versus a sub-urban area will be deemed of higher risk as chances of car accidents are higher. Insurance companies will take this factor into consideration when assessing your car insurance rates payable.
Type of Car
Bigger and more luxurious cars will also affect the car insurance rates. And if you are looking for a comprehensive cover for an old car, the rates will also be correspondingly higher as compared to a new car that has just been purchased.
Usage of Car
The more time you spend on the road will mean greater exposure to chances of having a car accident. Hence how and the frequency you use your car will affect the perceived risk that the insurer deemed you to have. If you are a sales person on the road, travelling across the country often, your car insurance rates will likely be higher than another person who merely uses the car to commute to and fro work daily within the city.
Although the final quotation offered by the insurance company may not be within your control. However, by understanding and knowing the above factors that influence car insurance rates and premiums, it can help you make better informed choices and find the way to cheap car insurance rates.
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