subject: How Not To Get Ripped Off On Car Insurance [print this page] Auto insuranceAuto insurance. Individual auto insurance rates are affected by many factors. When you buy a car or search for a new auto insurance policy, it's important to remember what will affect your quotes and to provide exactly the same information to each car insurance agent you speak with. Some companies may offer lower insurance rates for certain factors and some may penalize you differently for things like past auto accidents, so be sure you understand each auto insurance quote provided to you by any insurance agent.
Auto insurance rates are calculated by insurance companies using formulas and algorithms that are designed to predict how likely you are to file an insurance claim that will cost the auto insurance company money. Basically, a set of factors that tell the insurance algorithm you are a safe driver will result in relatively cheap insurance rates. Factors that say you're likely to be in an accident will result in a higher quote. The formula will also factor in your car. If you drive a new or high-end car, an accident is likely to cost the insurance company more money, so your rates will be higher. If your car is older or cheap to repair, the car insurance company is less likely to spend big bucks on you and you'll get a lower quote.
To really save on auto insurance, you'll want to do more than just call a few auto insurance companies to gather insurance quotes. You'll start with the type of car you purchase. Even if you get a great deal on that brand new luxury car, the insurance rates to cover it may cancel out what you save on sticker price. If you're looking to lower your car insurance premium, think about purchasing something a bit more mainstream, or better yet, a used car. Auto insurance rates for these cars will be much lower.
Secondly, to maximize your auto insurance buying power, you want to keep an eye on your credit rating. Some car insurance companies will incorporate your credit rating into their insurance quote formula. Better credit means you are less of a risk and often means a lower insurance rate. Of course poor credit will have the opposite effect on your insurance quote.
Thirdly, when you're on the road, remember your driving affects your auto insurance rates. Causing an accident will certainly raise your insurance premium, often for a period of several years. Getting a moving violation can also make those insurance rates skyrocket, so drive cautiously. If you do get a ticket, find out if there are any options for keeping the violation off your record (and thus off your auto insurance). Attending traffic school can be a cheap way to prevent your insurance rates from going up.
Finally, be sure you understand any other factors your auto insurance takes into consideration. Of course there are some factors your insurance agency may consider that are out of your control - your age, gender, or marital status, for example. But some insurance companies offer discounts to students who maintain a certain grade point average. Ask your auto insurance agent if there's anything else you can do to keep those insurance rates low.
by: Dennis Brier
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