Car insurance rates vary so much that it’s hard to know if you are getting the best rate without doing some research. Here are some tips to finding the best value for your situation.
In general, auto insurance companies determine rates using actuarial science to determine risk, and accounting for profits and operating costs. General factors used to determine risk are often based upon geography, vehicle types and age-influenced driving habits. Thus, your age, the car you drive and where you live are going to affect your rate. What’s more, insurers also look at annual mileage, credit histories, driving records, your sex and your claim history.
However, rates also vary from one company to the next, often due to competitiveness. Some companies will lower their rates for certain classes of risk to be competitive in the market. What this means is that you should do some comparison shopping instead of accepting the first rate quote you get.
Many state insurance departments of feature some general rate comparisons on their Web site, based on counties, cities or even ZIP codes. These rate comparisons can give you a good idea of what companies may be most competitive in your neighborhood. This can save you some time because you can contact the most competitive companies for a quote. Just be sure to provide the same information about your deductibles and coverages to each company so you can get an accurate comparison.
Another way to get competitive quote comparisons is through an insurance comparison site. Insurance comparison sites usually distribute your quote request to several different agents and companies who then compete for your business. Competing for your business usually means they are trying to offer you’re the lowest quote.
Make sure that when you follow up with quotes that you are interested in, you ask them if they are offering all of the discounts that are available. For example, you could qualify for money-saving discounts if you are a senior citizen, have low mileage or insure your home with the same company.
This process really doesn’t take that long, especially if you use a comparison site, but it is time well spent because it helps get the best rate that’s right for you.
Justin Scott recommends the comparison site LowerYourInsurance.com for up to 5 free auto insurance quotes, plus more information about saving on car insurance. The site also includes a car insurance quote comparison worksheet.
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