Tips On Buying Car Insurance

[ad_1]

Auto insurers underwrite policies by evaluating the risk assigned to each insurance applicant. During this process, a person is classified into a category, such as high-risk driver, low-risk, teen, or elderly. If this risk associated with the applicant is deemed too high, the application may be denied coverage altogether. After calculating the results, the insurance carrier then assigns a value, which is based on the perceived risk posed by the driver.

1. It is also known as driver’s rating

Insurers use this rating as a way of measuring how much it costs to insure a particular individual if a claim is made and how likely claims are to occur again in the future. This is often referred to as the financial responsibility that an insurer takes on. Tip is to maintain a safe driving record and avoid traffic accidents and you will go a long way towards getting cheap car insurance.

2. Not all insurance companies rate drivers equally

Many providers use the same general metrics but their algorithms that ultimately determine rates differ greatly. One of the biggest factors that all insurers use in calculating premiums is the frequency of accidents. Insurance kicks in when a person files a claim and accidents can cost thousands of dollars, especially if there is a death involved. The more claims a person files, the riskier they are in the eyes of the carrier and the more likely they are to file claims in the future. Thus, higher rates are imposed on these at-risk motorists. To keep rates low, avoid incidents and claims filing, and you’ll save a lot of money on auto insurance. If you have had an accident in the past, don’t worry.

3. Main Contributing Factors That Affect Auto Insurance Rates

*Driving Record: Auto insurers will keep a close eye on how many citations and accidents you have been involved in.

Maintain a good driving record and watch your rates go down.

*Where you live: If you live in a city, you can expect to pay more than if you live in a rural area with less traffic.

* The car you drive: This is a huge factor that makes up the rates. New and expensive luxury or sports cars have some of the highest insurance rates. On the other hand, used cars that are safe and inexpensive to repair have some of the lowest coverage costs. Get a boring used car and save on coverage.

* Marital Status: Married people pay less for a car because they are considered more responsible.

* Your age: Drivers under the age of 25 can expect to pay almost twice as much for auto ins. Sweet game for the lowest rates are between the ages of 32 and 62.

4. Apply for All the Exemptions You Can

A great and smart way to save on auto insurance is by applying for multiple discounts. If you have more than one vehicle, consider getting a bundled or multi-vehicle discount. You can also take a safe driver course and save around 5%. Other popular discounts are good students, military, and even teachers.

5. Shop Direct on the Web for the Cheapest Rates

The Internet has literally taken over the world. It has also saved millions of people money on car insurance. Buying car insurance online is smart because you can find direct rate pricing that most brokers can’t match.

[ad_2]