Auto Insurance Rates

These considerations include basics such as your location, driving record, credit history, and age. For young drivers, the difference from one insurance company to the next can be in the thousands per year. Drivers with an excellent driving history and good credit also save considerably on their insurance premiums. Ultimately, most individuals save if they do a little research and shop for the best discounts.

Auto Insurance Rates Online

With the advent of online auto insurance quotes, insurance companies are more competitive than ever with their pricing. Drivers may compare many auto insurance companies at their convenience and save even more if they purchase a policy online.

Obtaining auto insurance without an agent poses some drawbacks, however. Professional advice is useful for making the best choices on insurance and agents provide ongoing help as needed. As you shop for auto insurance rates online, pay particular attention to companies' customer service policies. If you have moderate experience with purchasing auto insurance, or have learned what to look for, you can purchase an insurance policy on you own with confidence.

Insurance Rate Factors

While you cannot change a number of factors, such as age and driving history, you can work with insurance companies that provide more savings and fewer penalties. If you have derogatory items, including poor credit or accidents, know that with time, as you improve, you will save more money on your auto insurance rates. Factors considered for auto insurance rates include:

• Accident Claims: Accident-free and claim-free drivers obtain the best rates.
• Age/Driving Experience: Young drivers, under age 25, have the highest premiums. Rates correlate strongly with the type of auto driven.
• Auto Type: More expensive automobiles lead to higher insurance rates. With younger drivers, owning a sports car or a car with a powerful engine will carry a higher premium.
• Credit Rating: Insurance companies often connect credit ratings with the likelihood of filing a claim. Check your credit rating for accuracy; obtain a better score if possible.
• Driving Record: Penalties for traffic violations, up to five years previous, raise your auto insurance rates. Some companies focus on more recent history.
• Education: Many companies provide discounts for higher education as well as good student rates.
• Location: Where you live makes a difference in your premiums. Factors considered include population and auto theft rates. Insurance companies vary on the premium for location, so be sure to check local companies in your comparison quotes.
• Occupation: The type of work you do may affect your premium even if substantial driving is not involved. Discounts may be available for individuals with professional affiliations.
• Other Factors:
  • Deductibles: Normally, the higher the deductible, the lower your rates.
  • Marital Status: Single drivers pay more.
  • The further you drive to work or school, the higher your premium.
  • The higher your annual mileage, the higher the premium is likely to be.
  • If currently insured or not and your present limits can equate into a significant insurance premium difference.
  • Auto-theft protection devices often lead to policy discounts.
  • Multiple cars and drivers carried on the same policy can reduced your auto insurance rate.

Young Driver Savings

Young drivers considering an automobile purchase should check the insurance rates for their desired auto before purchase of the vehicle. Rates vary substantially based on the type of car and its features. Safety features matter, and young drivers should inquire about good student discounts and multiple car and driver discounts, if applicable.

According to carinsurance.com, the following five new vehicles offer some of the lowest premiums during the first five years of ownership:

• Chrysler PT Cruiser (Wagon)
• GMC Safari SLE AWD (Minivan)
• Dodge Caravan SE (Minivan)
• Saturn ION 1 (4-door Sedan)
• Pontiac Sunfire (2-door Coupe)

Compare Rates

A variety of free consumer resources exist on the Internet. These services allow individuals to simultaneously compare rates from various insurance companies. Some of these services provide unbiased information, while others receive commissions from their recommendations. Check more than one insurance referral service to find the best discounts and plans. Start by reviewing LoveToKnow articles, such as Auto Insurance Online and Discount Auto Insurance, to find the best places to search for your insurance needs.

Before Purchasing a Policy

• Learn about the types of insurance coverage, such as liability and comprehensive.
• Look for good customer service ratings and availability.
• Verify how promptly claims are handled.
• Check the company's insurance rating with industry standards, such as A.M. Best, indicating the financial strength and reliability of a company.
• See if you qualify for additional discounts based on affiliation, policy renewal etc.

For More Information

After you have enough information to start comparing auto insurance rates, check out CarInsurance.com for rate comparisons, helpful articles, and a question and answer service provided by insurance experts.

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