Auto insurance is a necessity. In order to drive a vehicle on American roads, you must have auto insurance to cover third-party injuries and damage to your vehicle. Many people get confused when it comes to getting auto insurance and end up paying way too much for coverage. The best way to find low rates on auto insurance is to compare quotes from several different companies. Getting competing quotes will ensure that you get the lowest available rate. Here’s how:
Start Your Search: Start searching for auto insurance rates in the major metro areas of your state. This will ensure that you’re comparing quotes from companies based in your home state, which are typically a lot less expensive than those found elsewhere. Men usually pay more for coverage than women drivers for much the same kind of coverage, due to men being more prone to speeding, causing accidents, not wearing their seat belts, having a flashy sports car, drive significantly over the speed limit, and spend so much time on the open road.
Check Your Speeding Ticket: The majority of auto insurance rates are based upon information about you such as your age, gender, marital status, driving record, place of residence, your credit history, your vehicle, and the specifics of any at-fault accident you may have been involved in. If you have a clean driving record with no traffic violations or wrecks, you should be able to get a great rate. However, if you have one or more wrecks or traffic infractions on your record you should expect your rates to be higher. Some of the factors considered by insurance companies include your age, gender, driving record, credit score, type of vehicle, your driving history, whether or not you’ve had an at-fault accident, how many speeding tickets you have on your record, your claims history, how safe of a driver you are, how old you are, your credit score, the make and model of your vehicle, how many people live with you, where you live, what type of car you drive and your relationship with other drivers. Some insurers also consider the possibility of another driver being hurt in a wreck you are involved in.
Bad Credit Drivers: Those who have a bad credit history or multiple tickets on their record can expect their rates to be very high. Some drivers with bad credit can expect their auto insurance rates to be nearly double what drivers with good credit standing pay for comparable coverage. Drivers with bad credit may find that they need to search for car insurance at much lower rates, but it’s important to keep in mind that some insurers will make exceptions for those who are in this situation.
Driving History: Many insurers look at the drivers driving history to see how safe of a driver they are. Drivers with a history of speeding or drinking alcohol can expect higher prices for comparable coverage. Those drivers who are involved in many car accidents also face a higher price for car insurance. If you have made many insurance claims in the past few years, your rates can go up as well. Those who have taken advanced driver safety classes can expect lower auto insurance rates than those who don’t take these courses.
Increase in Vehicles Owned: Often times those who own more cars also have a higher chance of having an accident than someone who only has one or two vehicles. The same goes for those who own expensive sports vehicles. Drivers who own more vehicles are seen as higher risk by auto insurance companies and as such are often charged higher rates. If you want to save some money on your premiums, you should make sure not to overextend yourself financially by buying too many vehicles.