Insurance companies consider many factors before providing you with an auto insurance quote. Here are some of the basic information that goes into compiling your auto quote:
Age: Insurance companies like older, more experienced drivers. According to the CDC (Center for Disease Control and Prevention), 16 to 19 year olds are four times more likely than older drivers to be involved in a car accident. Premiums tend to decrease as the young driver ages.
Car type: New, expensive, fast cars are more expensive to insure than older, slower cars. Check if the car you want to insure is a high-risk car, which means it is often stolen or vandalized. For example, in 2004, the 1995 Honda Civic was the most stolen car in the United States according to a November 2005 report by the National Insurance Crime Bureau. Discuss this with your insurance agent before choosing a car. The cost of insurance can determine the price of the car you can afford.
Driving record: A good driving record is important to get a lower rate. If you have a violation, attend a driving course. This can help lower your rate. Some insurance companies do not insure drivers with very poor driving records.
Credit Score: Yes, it's true. Credit score. Your credit score is also used when purchasing insurance. This is called an assurance score. Studies indicate that the way a person manages their finances is a good predictor of the potential for insurance claims, therefore, they charge a premium based on the risk they assume. According to statistics, people with lower insurance scores are more likely to file claims.
Deductibles: The higher the deductible, the more you save in premium. Go as high as you can afford.
Underwriting guidelines vary slightly from company to company, so get more than one auto quote and compare.
