Although it is not easy to find the perfect insurance company, having automobile insurance is extremely profitable and even mandatory in most states. How do you know you are getting the most for your money? Before beginning to shop around for automobile insurance, there are a few key factors to remember.
Beginning Tips for Saving Money
Always drive defensively. From driver’s education courses to traffic court classes, the message is always the same. Drive defensively. This will lower your risk and cause fewer accidents on the road. Many insurance companies even have rewards for defensive drivers such as providing discounted rates for each year of safe driving.
Do not buy the newest vehicle you can find. Rates will rise with the value of the vehicle. Because of the high value of some vehicles, the risk of auto theft will cause the rate to rise thus leaving you with an undesirable monthly rate. Make sure to do your homework on the theft rate of the vehicle you are looking to purchase. You may be risking a lot more money than you initially bargained for.
Purchase a vehicle that will perform well in case of an accident. Buying a fragile vehicle will also raise the risk and your rates. In terms of an accident, the less damage the better off you will be. If a certain vehicle has a poor performance rate in regards to an accident, insurers will note that performance rate as they give you a quote.
Be sure to explore all the options for automobile insurance. Going with the flow on buying automobile insurance may cost you. Shop around and compare prices. Find the lowest rates possible to save you money in the most ways. In addition, be sure to note the company’s approval rate. Check with relatives to see what they like about their insurance company.
Factors that Affect the Insurance Rate
The age of the one looking to be insured is a key factor. Statistics show that young male drivers start with a high risk rate. Most companies will lower the rate as you get older because of the risk of an accident is lower.
Your driving record factors into how high the rate will be as well. Some companies may penalize you for violations on your record for as long as five years. As your driving record improves, the rates will also improve and your premium will be lowered.
Having several years of driving experience will help keep rates lower. The more experience you have as a driver, the more likely companies are to quote a lower price.
Where you live makes a difference in the risk. Those living in urban areas are more at risk for auto theft as well as at risk for accidents because of congested driving conditions. For rural drivers, risk is lower because traffic congestion is not as heavy and auto theft is less likely.
Occupation often factors in to risk rates. People who drive for a living will definitely see a higher risk rate than those who drive a few blocks to work. Naturally, the more miles you drive results in a higher risk for an accident. Often this factor cannot be controlled as well as the other factors, but do remember this when searching for the right insurer.
Many auto insurance companies base their rates on the vehicle that you drive. As previously stated, certain makes and models of vehicles are more fragile than others. Look for a dependable, durable vehicle in order to bring the cost of insurance down. Be sure to ask the insurer if the rate is higher because of the make and model of your vehicle. Take into account the status symbol that your vehicle holds. High end vehicles may improve your social status but may drain your bank account as well when it comes to paying insurance.
Remember that higher education that you spent years working toward? Well, finally it is paying off. Many automobile insurance companies offer lower rates for those who have a higher education.
Be sure to make yourself as low risk as possible. Drive safely and defensively. Keep your driving record clean and look for a durable, less expensive vehicle. Your rates will be lowered each year as your driving record improves. Sometimes lowering your rate for risk can be as simple choosing the job offer that is closer to home or choosing to live in a more rural area. You may not get to travel much with your job, but saving money on automobile insurance may make up for it. We can help you shop for auto insurance with our quote tool at the top of this page. Get started today!
Types of Coverage Available for Automobile Insurance