In a world that keeps relentless record of every single thing that happens in your life, calls it a credit report, and takes pleasure in throwing it in your face every time you rent a house, try to get a loan or try to buy car insurance, it can seem like there's nothing that's in your control - it's all written down somewhere what you're entitled to, and you're never getting anything better. While that is true to an extent, there still are some things you are allowed control over. And a competitive car insurance rate (if not the best car insurance rate) is one of them.
The process that auto insurance firms use to assess your risk and quote you a premium is called underwriting. All insurance companies use more or less the same method, although there may be a few wrinkles that look different from one service to another. Let's look at the most important areas they judge the merits of your case by, and what you can do about it.
Of the parameters they use that are more or less set in stone, are these:
How old you are - underwriters think that people mellow somewhat by the time they hit 25; anyone under that age, is considered a hellcat driver and is charged twice the adult base rate. However, whatever you lose before you turn 25, you more than make up for when you get older; anyone over 40 for instance can expect the most competitive rates. In a world where men often can't help but feel that they are somehow superior at driving (even if they refuse to admit that they feel that way), here's positive proof; when the insurance companies need to bet cold hard cash on it, they'd bet on women for driving skills any day. But women can expect anything but the best car insurance rates if they run up a few tickets; the insurance companies consider your driving record for the past five years to adjust your premium with. But anyone who's married can expect the underwriters to believe that they have settled down, and intend to drive safe and stay alive.
Expensive cars are more expensive to get fixed. Even some affordable cars are quite expensive to maintain. Since insurance companies are in the business of fixing your car in the event of an accident, they'd rather you got a car that was cheap to fix. And so to encourage the right kind of car buying behavior, insurance companies choose to charge larger premiums for fancy and difficult-to maintain cars - which are usually fancy sports cars. In general, you can expect expensive insurance for cars that encourage you to go faster, and cars with a record of unreliability that spend a lot of time at the repair shop. The more you drive, the more you expose yourself to risk; so those who drive a lot can expect a proportionately higher insurance bill. But let's look at how there are some things that you could do differently, and attract some of the best car insurance rates and insurance companies reserved for certain kinds of customer.
1. Where you live, matters to the insurance agency; they care, because auto parts and auto repairs are more or less expensive, depending on the region. New Jersey for instance, has expensive auto repair; and Ohio doesn't. Living in an area where people seem to have lots of accidents also affects insurance rates.
2. Did you ever hear it said that education opened doors? It opens doors to anyone looking for the best car insurance rates two. A high grade point average knocks a couple of hundred dollars off your insurance bill. In the more education you have, the lower you paid two. A college education for instance, is a favorable thing to have. And can expect the insurance company to eye you with a little extra respect if you take a driving course that's state approved.
3. The more business you bring in and insurance companies weigh, the more they show their appreciation by giving you twofer. The more cars you have the more you get a discount. But if you have children and more than two cars, that could cost you extra. And if you can get health insurance from the same company, they'll give you a discount for that too.
4. Try to get a great car security system, and you can expect a discount from your insurance company. And oh, could you get married while you're at it? They feel that you're more responsible when you're married.