Auto Insurance Quotes - What Affects Your Car Insurance Quote and How Can You Lower It?

When shopping for insurance it is always wise to compare multiple auto insurance quotes from many different companies. You will want to compare rates from at least five or six different companies to make sure you are getting the policy that is right for you at the best price possible. But how do companies determine the quotes that they give you?

Insurance companies look at a variety of factors before determining the quote they will give you. Here are some of the main things affecting the price of your auto insurance policy.

Factors Affecting Your Auto Insurance Quotes

1.Your Age: Younger, less experienced drivers and also very elderly drivers are more expensive to insure.

2.Your Gender: Female drivers are less expensive to insure then male drivers.

3.Your Location: Where you live will also affect the price you pay for auto insurance. Not only do different states cost more in terms of insurance than others, but people living in rural areas most often pay less for car insurance than those living in a more urban area.

4.Your Vehicle: The vehicle you drive makes a big difference in terms of cost of insurance. Cars that insurance companies deem more likely to be stolen and cars that are expensive to repair will cost more to insure.

5.Your Credit Score: Many insurance companies will look at your credit score when determining the quote they will give you for car insurance. Insurance companies look at people with lower credit scores as higher risk and therefore assign hem higher rates.

6.Your Driving Record: Auto insurance providers will of course check your driving record to help determine what you will pay for insurance. If you have a history of tickets and traffic violations it will affect you quote.

7.Your Claims History: The company will also want to know what claims you have made in the past. If you a history of making claims it will affect your rates.

What Can You Do to Lower Your Car Insurance Quotes?

Obviously many of these factors are beyond your control. However, there are some things you can do to pay less for car insurance. When buying a vehicle, consider what it will cost you in insurance.

Another thing you can do is work on lowering your credit score. Pay your bills on time, avoid opening unnecessary lines of credit and start paying off your debt and you could raise your credit score and lower your auto insurance premiums.

Also, start being a safer driver. While you cannot change your driving record, you can avoid future tickets and driving violations.

Comparing multiple quotes before buying car insurance is another way to save money. If you already have a car insurance policy, it is a good idea to compare quotes every six months or so as car insurance rates from various companies can change dramatically over time.

Article Source: http://EzineArticles.com/?expert=Laura_Caldwell

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Cheap Car Insurance for Women – It’s Cheaper, But Why?

“Women drivers.” Most of us have probably heard that phrase grunted from a man in our lives, whether a friend, family member, coworker, or complete stranger. And, most women have probably been somewhat aggravated by the negative connotation. But, did you know that women’s car insurance is generally cheaper than men’s car insurance? It’s true, and as sexist as it may sound, it’s actually not. There are a plethora of statistical facts that tend to cause car insurance companies to offer lower rates to women drivers than to men drivers, and none of those reasons include the idea that women drivers can’t drive!

Car insurance companies have researched data over a number of years, and the findings support the idea that, as a whole, women drivers aren’t involved in as many accidents as men drivers, and the motor vehicle-related accidents that women drivers are involved in often don’t cause as much damage as motor vehicle-related accidents men drivers are involved in. Women drivers also don’t commit as many motor vehicle-related crimes as men drivers. As if all that weren’t enough, women drivers are also more likely to pass their driver licensing exams on the first try than men drivers.

Because of these statistics, car insurance companies are more apt to offer cheaper car insurance to women drivers than they are to men drivers. Women aren’t being offered cheaper car insurance rates because they are women; they are being offered cheaper rates because statistics show car insurance companies that lower rates are not a dangerous bet for them.

Of course, this isn’t to say that women are better drivers than men, or that any woman driver out there is going to be a better, or safer, driver than her male counterpart; however, it is to say that statistics point to the fact that overall, women are generally safer drivers than men, thus resulting in the reward cheaper car insurance for women.

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Cheap Car Insurance For First Time Drivers

If you are new to driving it would be better, unless you have lots of money, to begin with a car from a lower insurance group. If you can build up and maintain a no-claims profile with no penalty points, you should be able to move up the car insurance groups without significantly increasing your premium.

The idea is that cheap car insurance for young drivers should be competitive because you are cutting out the middleman, so the insurer can pass the savings on to you. However you will have to do the leg-work though, which can take a few hours, but it will be time well spent. You should call at least three insurance companies before deciding on a policy. And remember that you can often save between 10% and 20% by going online. Most insurance companies offer cheap car insurance for first time drivers online. So if you get a telephone quote then you need to check you are not missing out on a deal which you can only get online, even from the same insurance company.

There is no shortage of websites that will let you compare car insurance policies and prices between different car insurance companies. But to get the best possible deal, then you need to spend a few minutes making certain that you are answering all of the questions correctly before you jump online.

Don’t think, however, that you can get away with only looking at comparisons on one website. Each website only compares a small handful of insurance companies. If you really and truly want to make sure that you are getting the very best deal possible on your car insurance, then you really need to bite the bullet and take the extra time to make the same comparisons on at least 3 different websites.

Another way to secure cheap car insurance for first time drivers is to pay up front for the policy. Paying by monthly instalments may appear to be the cheaper option but many insurers will charge interest on the payments (up to 25% APR) and this could effectively clear any perceived savings you made on the policy.

Also consider adding breakdown cover to the policy if offered by the insurer as this could save you a lot of money in the long run and is usually quite cost effective considering the peace of mind it delivers. You can save £50-£100 by getting your breakdown cover this way.

So, before purchasing cheap car insurance for young drivers it would be wise to view the car insurance groups that a particular car falls into. These car insurance groups classify cars in a certain level of insurance and each car is assigned a group starting from one and ending at twenty. Buying a car relative to the most affordable group would be a more sensible way to save money on insurance.

Paul Hockney is a car insurance specialist who provides new drivers car insurance tips and best insurance reviews.

Article Source: http://EzineArticles.com/?expert=Paul_Hockney

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Top 10 Auto Insurance Myths - Debunked

10. Every state requires liability insurance.
FALSE. While most states do require liability insurance, some states do not. Despite whether the state requires liability or not, it is never a good idea to drive without liability coverage. If you were in an accident, were found at-fault and had no liability coverage- you could be sued for all of the damages.

9. Standard collision coverage protects me against damages caused by windstorms, hail, animal accidents and theft.
FALSE. While collision and liability coverage will cover damages caused by your car colliding with another vehicle or object, you have to have comprehensive coverage if you want to be covered for windstorms, hail, theft or accidents with animals. Many drivers mistakenly think, for example, that if they hit a deer that this will be covered under their collision coverage. This is not true.

8. My new car is covered under my insurance policy automatically.
True and False. While most insurance companies will automatically cover a new vehicle, this coverage is temporary and it is your responsibility to tell them about the new vehicle within the amount of time specified in your contract.

7. If my friend gets into an accident in my car their insurance will pay for my damages.
FALSE. Because it is your car- it needs to be covered by your insurance. While the other driver’s insurance might be used to pay excess damages, it is still primarily paid by your insurance. Also, even if you were no where near the scene of the accident, your insurance score may be affected.

6. Drivers of red cars pay more for their auto insurance
FALSE. It is a common belief that car insurance rates are affected by the car color. In actuality, the color of a vehicle does not affect the premium at all. Some factors that do affect your premium are the make and model of car, its safety features, where it is parked most often and what city you live in.

5. No-fault insurance means my premium won’t be affected even if I am in an accident that is my fault.
FALSE. No-fault insurance means that your insurance company will pay for your damages no matter whose fault the accident is. It does not mean that your insurance score won’t be affected or that your premiums won’t go up.

4. Males under 25 years old pay the highest insurance rates.
FALSE. While young men under 25 do pay higher insurance rates than female drivers- they are still not the highest paying customers by age group. Teenagers and senior citizens typically pay the highest rates due to the fact that they are involved in more accidents than other age groups.

3. If I want to switch insurance companies I should just let my current policy lapse.
FALSE. Letting your current policy lapse can reflect negatively on your credit score. If you want to switch insurance companies you should officially notify your insurance company that you are cancelling your policy and pay any fees or premium that they require.

2. My personal insurance will also cover my business use of my car.
FALSE. If, even occasionally, you use your auto for business purposes, you will need to extend your personal car insurance to cover your business use as well.

1. My credit score does not affect my insurance rate
FALSE. Your credit score information does play a small role in determining your rates. Insurance companies will typically reward drivers with lower rates if they have a good credit rating. When you are shopping for auto insurance, companies may check your credit score. The type of inquiry made is called a “soft inquiry” and does not negatively impact your credit rating. Inquiries from credit card companies, banks and other lenders are considered “hard inquiries” and can negatively impact your credit score.