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Exposing The Car Insurance Quote Mystery
By: Dr. Jay B Stockman O.D.
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.
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. |
