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December 30, 2015

December 26, 2015

December 26, 2015

You may feel that an insurance company sets its rates car throwing darts at a target or consulting a Ouija board, but that is not the case.

In fact, companies are based on sound statistical data – compiled and tested over decades – to determine the fees charged to individual customers. Insurance is all about risk and few understand how to best assess the risk insurers.

Auto : How are determined A car insurance company considers many factors when assessing risk, including:

Years. Gender. Location. Type of vehicle. Civil status. Accident history. Driving record. Annual mileage. The credit score.

These factors help insurers form a composite material aspect to their customers, and assess which are the most likely to cost them money through higher than average rates of claims. Those who are considered more likely to file a claim for an action that caused be labeled with higher insurance premiums.

Car Insurance Rates -Like it or not, this is how the system works.

Who gets the cheapest car insurance rates? Overall, insurers offer cheaper car insurance rates which:

They are women. They are over 25 years old. They are married. Conduct a car less expensive more. Driving a car with a good safety record. Living in a rural area. No accidents attributable. They have no moving violations. Meet insurance low mileage standards for your state. Having a high credit score. Drivers with these characteristics has been shown that – on average – cause less accidents, report fewer claims, and insurance cost less money. That is why that fits in most of these categories pay a rate cheaper car insurance than other drivers.

However, insurers do not weigh these factors equally. For example, your driving record, age and gender are more important than their marital status or your credit score.

How to lower your Car Insurance Rates

When it comes to reducing your premiums, you have plenty of options. Not all the following actions may be feasible or possible for you, but it can have a positive influence on the price they have to pay for insurance:

Increase your deductible. Reduce maximum coverage (be careful with this). Take a safe driving course. Maintain a high GPA. They have the newest security features in your car. Driving a vehicle with a good safety record. Improve your driving record. Have fewer accidents attributable (ie accidents causing). Move to a more rural location. Drive fewer miles. Raise your credit score. Your insurance agent or insurance company can offer other ideas about how to reduce your rates.

Compare Car Insurance Quotes

Although the car insurance companies tend to think alike, the prices charged for coverage can vary greatly.

So it’s smart to compare insurance rates with several companies. You can do this online quickly; indeed, some sites allow you to view numerous suppliers at a time.

Just keep in mind, however, the company with the cheapest rates is not always the best choice for you. Car Insurance Rates