Really Cheap Car Insurance - You Want It Cheap? Start Here
Is there such a thing as really cheap car insurance? I don't
know how that happens unless you have a really cheap car that
you hardly ever drive and nobody in your geographical area has
had an accident in the last 20 years. That would drive the rates
down significantly. The reality of that all occurring is
somewhere between very slim and none. Car insurance is given its
rates by insurance actuaries. They review claims experience in
certain geographical areas along with driver age groups to
obtain some of their criteria for determining rates. The kind of
vehicle that you purchase has a lot to do with rates. Some
vehicles have a very high theft rate. It's just not that simple
to come up with a low rate with all of these unknown factors.
The logical approach to finding low cost insurance is to gather
insurance quotes from several companies and from that you may be
able to find the lowest comparative rate.
Rating Factors
1. Geographical Area - You have no control over the driving
experience in your own back yard. That still doesn't negate the
fact that your neighbors can affect your rates. The higher
frequency of accidents in your area will increase the rates. The
severity of accidents will also affect your rate. You will often
find higher frequency fender bender accidents in the inner city
while the rural areas may have more severe accidents because of
higher speeds traveled on the open highways.
2. Vehicle Types - Older vehicles with physical damage are
obviously cheaper. Sports cars and expensive sport utility
vehicles will increase the rate.
3. Young Driver Discounts - Some companies have discounts for
good students with a 3.0 grade point average along with a
drivers training discount. When you put the two together it can
be significant.
4. Retired Discounts and Mature Driver - Some companies have
retirement discounts and mature driver discounts to lower the
rates for senior citizens.
These are just some of the many possibilities. Ask about
available discounts when shopping for car insurance. Consider
the area in which you live and adjust with the types of vehicles
you purchase and how you arrange your coverage. Educate yourself
more than you have before and you will help your cause.