Many people have a general idea of what to do to get cheap insurance premiums but typically do not understand all the factors that make up car insurance quotes. Some factors are out of your control, but others you can change in order to get a better deal on car insurance. If you don't know what these factors are, you can't change them to be in your favor!
Insurance companies need to make money. In order to do so, they need to take risk into their calculations - insuring a risky driver may cost them a lot of money, and this is reflected in the premium. The factors to determine risk are pretty consistent across insurance companies, though how each factor is weighted may vary. Insurers also have their own statistical information on risk, which may result in different premiums for the same person at different companies.
The universal factors determining car insurance quotes
Location
Where you live may affect the amount of your premium. If you live in an area with higher auto-theft rates, crime rates, or that is more populous, you will likely pay more for car insurance.
Age and Gender
Accident rates tend to vary across ages and gender - more specifically, the younger you are the more likely you are to get into an accident, and males get into more wrecks than females.
Type of Vehicle
The year, make, and model of your vehicle are also considered in your quote. Certain cars are considered safer than others and some cars are cheaper to repair.
Credit Rating
Statistically speaking, insurance companies have found that how well you keep up with your bills is correlated with your likelihood of having an accident. This is why many companies look at your credit history and score. Working to raise your credit score may get you better rates in the future.
Driving Style
The more you drive, the more likely you are to get into an accident. People who drive above a certain mileage per year will likely have higher premiums. Also, some companies provide trackers for you to attempt to get cheaper insurance. Driving after midnight will lower your discount.
Driving History and Prior Claims
The number of accidents, tickets, and insurance claims you've had will have an affect on your premium. Typically, this record goes over the last three years for accidents and five years for insurance claims.
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