Auto Insurance Pricing Factors

The truth is, getting coverage that is that cheap is all but impossible, and there are many factors that go into automobile insurance pricing. Let’s take a closer look at a few of the big factors, so you can be more informed and hopefully pay less for your coverage.

1. Lapses in Coverage

Having auto insurance is the law in nearly all states in the U.S. but many people cancel their coverage and don’t think twice about it. This is not a good move because insurers look at this as an added risk. People who do not maintain continual vehicle insurance are also more likely to cancel a policy or not pay their premiums. This is why this often overlooked factor plays a big role in rates. If you are switching to a new insurer, just make sure there are no lapses, and you should be able to get a cheaper policy in the future.

2. Your DMV Driving Record

Almost everyone thinks they are a good driver, even people that get into numerous at-fault accidents. It always seems to be someone else’s fault, but many people are just lousy drivers. Car insurers take accidents and traffic violations seriously. If you have received a lot of tickets, especially more severe ones like reckless violations, then you will be paying a lot more to get covered. Those drivers with no crashes and no tickets for a three-year or longer period are considered safe drivers. This should be an important objective to all money saving motorists because having a good driving record will save you 15% or more on automobile insurance. If you have more than 3 tickets on your record, get them cleared up as soon as possible. Go to court and talk to the judge and work out a payment plan or go to traffic school. Once you get your driving record clean, maintain it by obeying all traffic laws and drive safely.

3. Your Age and Driving Experience

This is a super big factor that plays a large role in what you will pay to get covered. Motorists that are between 18-25 pay the highest cost to get covered of any age group. Yes, that means that elderly adults over 80 can get insured for less than a 19 year old teenager. The reason for this is all stat based. Young drivers take more risks driving and engage in super dangerous behavior like texting while driving. As a consequence, this group of drivers get into more accidents than any other and often pay twice as much for coverage. The sweet spot for low rates is between 35 and 60. These motorists, if they maintain a good DMV record, can get exceptional cheap rates. For those young people 24 and under, take a certified defensive driving class and get good grades in school. These two things can save you a combined 15% or more.

4. The Vehicle you Drive

Most people do lots of research on the car they want without ever even thinking about the expense of auto insurance. The type of automobile, year and current value plays a very big role in determining rates. Some cars that you might think would be expensive to insure are cheap and others that you would expect to be really costly are not. For example, a late model Jeep Cherokee is less expensive to insure than many sedans like a Honda Accord. This is because Honda’s are frequently targeted by thieves. Auto insurers pass these costs onto consumers who own these often stolen vehicles. If you are on a tight budget, get a car that is 4 or 5 years old and non-sporty, like a Toyota Camry. Avoid new or used sports cars like a Porsche or Corvette. Also, stay away from vehicles that are always on top of the 10 most stolen automobiles. Do your research on the car you want simultaneously with the cost of insuring it and you will know if you can afford it.

Shop Online for Lower Rates

Now that you have gained an insight into the main factors that insurers use to calculate premiums, it’s time to compare quotes. The best place to comparison shop car insurance prices is on the web. Apply for your free custom quote today and save more of your money on auto insurance.


Ways to Save on Auto Insurance and Gasoline

One of the best opportunities one can get today is cutting his expenditure on auto insurance and gasoline. In today’s economic times a saving on either expense is more than welcome.

Today more than ever people are looking for ways to cut auto insurance and gasoline costs. Everybody is asking themselves, how can I cut my expenses on car insurance along with gasoline?

The answer to, how you can cut expenses on your auto insurance quotes and premiums is, by keeping a clean driving record. Most insurance premiums are calculated based on risk. Auto insurance premiums are even more personalized in that insurers can calculate your personal probability to accident based on your own personal details and records. If you are an irresponsible driver, chances are you will have received a ticket from the authorities or you may have been involved in an accident. Insurance companies may pick this record up during a background check when they are calculating your premium. The more spots you have on your record the higher your premiums. Therefore the best way to save a lot of your hard earned income from insurance premiums is by being a good driver.

Secondly, how you drive will have a big effect on how much gasoline you use. If you want to save money on gasoline you should note that, Drivers who constantly accelerate and decelerate will definitely use more gasoline than drivers who maintain a constant driving speed. Balanced drivers are also safer drivers hence the chances of them being involved in an accident or being in the wrong if they are in an accident are low.

Finally, be a responsible citizen. Pay your public bills and fines on time. Today’s auto insurers just like any other creditor, credit or financial institutions have access to your personal credit history. A bad credit history will mean that insurers will take only cash/instant payments. This will cut you off from their credit line [monthly installment], which if you had access to, would reduce the burden the premium bill will have on your savings and current expenses.