Exposing the Car Insurance Quote Mystery
Congratulations, you have just purchased the car of your dreams;
you worked a great deal, now it is time to insure it. Car
insurance is mandatory in all states, and must be maintained
throughout ownership. Insurance quotes can vary from company to
company, and there are a few factors that you can control, and
other factors you cannot. A full understanding of how insurance
quotes are arrived at, will give you the best rate, and maximum
coverage.
Factors that cannot be controlled include the age of the driver.
Common sense tells us that a new driver would be more of a risk
to an insurance company, than an established driver. Therefore a
driver in their early 20's would pay a higher premium than a
driver in their 40's. Further, elderly drivers have poor
reaction time, and similarly would pay more of a premium. The
ideal driving age would be between 35 to 55 years; anyone
younger, or older would pay more.
Gender is another uncontrolled factor that insurance quotes are
based on. Statistically, insurance companies see females as
safer drivers than males. As a result, female drivers pay less
than their male counterparts.
There are factors, which we can control, namely the amount of
traffic tickets and accidents. A ticket is a violation of law
that could potentially result in an accident. Insurance
companies frown on this, and will penalize the driver with
higher rates. Similarly, accidents could indicate a pattern of
behavior; as such the driver is penalized with higher rates.
Where you live is another controlling factor that effects
insurance quotes. Living in a rural area, puts the driver at
much less risk of accident or theft as compared to living in a
city. As a result, city drivers will pay a larger premium than
rural drivers with very few exceptions.
Want to drive a Porsche 911 Carrera? It will cost you. The more
your car is worth, the higher your insurance quote will be. The
logic should be obvious.
Car insurance companies are now looking at your credit
worthiness. Do you have excessive, outstanding credit, or no
credit at all? If so, you are a risk in the eyes of the
insurance companies, and will get socked with higher insurance
quotes. Keeping your credit in check will show the insurance
companies you are responsible, both financially, and on the
road. As a result, you will pay lower premiums.
Your occupation can put you at a higher risk. Jobs that require
many hours of driving, or driving in hazardous conditions, or
places will put your quote at a higher rate. Less driving, and
exposure to high-risk opportunities, will result in lower
premiums. Additionally you want to keep your annual mileage down
to a minimum. The more miles you drive, the greater the risk of
accident.
Vehicle theft is a risk factor that can easily be minimized.
Most companies will give you a discount for having better
security for your vehicle. An alarm, or another approved
anti-theft device will usually result in some discount. Some
companies may insist on having such devices installed on more
expensive and desirable cars before they even consider offering
you a price.
Some companies look favorably on drivers who have taken a
defensive driver's course. They see this as a commitment to
safer driving, thereby lowering the risk of accident, resulting
in lower premiums.
Keep in mind these are just general guidelines, and the
difference in price between various companies can be
significant. What one company may consider a high-risk factor
another company may not view as so important. The bottom line,
keep your credit in check, be careful on the road and choose a
car that fits your budgets.