Article
| Exposing the Car Insurance Quote Mystery |
| By: Jay B Stockman |
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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.
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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.
About the Author
Jay B Stockman is a contributing editor for Car Insurance Quotes Resource Visit http://www.car-insurance-usa.com/ for more information. |
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| Lower Car Insurance Price - 5 Considerations To Computing Your Car Insurance Premiums |
| By: Lower Car Insurance Price - 5 Considerations To Computing Your Car Insurance Premiums |
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Have you ever wonder why car insurance costs vary from one car insurance company to the other? This is due to the different type of computation factors that car insurance companies use to derive the car insurance cost. Based on the answers that you replied to the car insurance company, they will add or discount the cost before arriving at a final price for your car insurance. Thus, it is important for you to shop around first before you commit yourself to a particular car insurance company as different companies take a different view of the various high risk factors. We will look at some of the factors that car insurance companies take into considerations.
1.Having a clean driving record.
Without a doubt, car insurance cost would increase if you have been convicted of a driving conviction. Thus, it pays to be a safe driver so that unnecessary costs won't be incurred.
2.Adding additional drivers to the policy
By adding additional drivers to the policy, extra premiums will be added. Thus, do not add in drivers into the policy just because you think that this person might be using the car in the future. Consider carefully whether it is necessary to add this person into the policy.
3.The age and gender of the driver
If the driver is under the age of 25 the rate will mostly likely be fairly high. This is due to the lack of driving experience. Usually, you will need to have over three years driving to be quoted a lower rate. Also, a single male driver rates higher than a single female. This is because males are rated as a higher risk to car insurance companies.
4.Your credit report history.
Most car insurance companies take into account of your credit history. Paying your bills on time and maintaining a good credit history will allow you to enjoy lower car insurance cost.
5.Anti-theft alarm
Fix up an electronic central locking and alarm on your car. Discount could be given by insurance companies when you have anti-theft devices install in your car.
About the Author
Justin Koh is a freelance writer whose articles have appear in most major ezines. You can find more of these at: http://www.carinsurancecentral.info
You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated. |
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