Have you ever thought why some people get low and others get high vehicle insurance quotes? There are a few good reasons behind each price be it low or high. Companies take risk when they insure a particular driver and car and that risk has a price. They are pretty good at sorting out bad drivers and charging them expensive rates while they reward good drivers. However, there are a few more factors that affect your costs and they are discussed below.
- Your Personal Details: There is not much you can do about your age and gender and they affect the rates more than you think. Furthermore, your background, zip code, education and profession affect the costs as well. If you have a university degree you should check if your hard work in getting it will pay off with low premiums. Some companies offer special discounts for the graduates of a particular university or member of a certain profession.
- Specifications of Your Auto: Are you looking for engine power and how fast it can go up to 100 miles when you are buying a car? If you want to get low automobile insurance you should be looking for its insurance ratings, safety and security features. Certain cars are safer to drive than others and this is a sought after specification by insurers.
- How Customized Your Policy Is: The more you customize your car and policy the more you need to pay. If you can keep it simple you will have plenty choices available to you. However, you will have to pass a few good deals if you insist on certain types of coverage, insurers and you have specific conditions or requirements.
- Credit Score: This has nothing to do with driving but still one of the most influential factor in premium calculations. Companies are looking at other indications that they will not get claims from policyholders. According to their studies, people with good financial standing are less likely to make a claim and therefore deserve lower rates.
- Your Driving and Claim History: It would be shocking if they didn’t look at how good a driver you are and how many claims you have made in the last few years. These are clear indications of the risks they are accepting. You prove your abilities behind the wheel when you have no traffic violation tickets or claims in the last few years. Generally, they look at last three years.
- Where You Live: This is clearly visible when you compare prices in the cities and small country towns. There are higher auto thefts, crimes and congestion in the cities that force the insurers charge more for increased risks. It is a very important factor that can result in tripling the costs. Also, the increased coverage requirements and laws that protect consumers better in your state can result in higher premiums.
Anything that causes companies to pay claims or increased amount of money for such claims is a factor taken into account. At least ten more of them can easily be listed here but those above are the key ones and they can deliver the largest savings for you.