If you’ve ever compared auto insurance rates across insurance companies or compared hours against a friends you might be feeling like auto insurance quotes are randomly generated. In fact, there is a lot of science behind a auto insurance quote.
Auto insurance companies are businesses, which means they are in it to make money. The more cars they have to repair or replace and the more medical bills they have to pay, the less money that is in their pockets. Therefore, insurance companies prefer to have the safest drivers insured through their company.
Most people think of safe driving as not getting into an accident and nothing else. This isn’t good enough for an insurance company. They spend a lot of money conducting research to find out, according to statistics, which factors make a person a more risky driver. Better yet, they simply want factors that are correlated with risk – it doesn’t even need to be directly related!
All of this research and statistical data goes into a formula, which calculates your premium. Insurance companies conduct their own research, so everyone’s numbers will be slightly different. Insurance companies also weigh factors differently. This is why you see such dramatically different results across insurance companies and individuals.
Here are some of the most common factors insurance companies look at when determining your auto insurance quotes:
Driving record – this one is the most obvious. If you’ve gotten into multiple accidents or have received a few traffic tickets, you are considered a risky driver. Keeping your driving record clean and taking driver’s education classes can help prove you are a lower risk.
Your address – where you live and where you park your car can affect your rates. Highly populated areas have more people, which means a higher chance of getting into an accident, having your car stolen, or having your car vandalized. If your car is parked in a garage or has an alarm system you might be able to get a discount.
Miles driven per year – the more you’re on the road, the more chances you have of getting into a wreck. Insurance companies usually want to know how far you drive to work or school each day, and how many miles you put on your vehicle annually.
The type of car you drive – certain cars are statistically involved in more accidents and thefts than other cars. Driving a safe vehicle with the latest security features is a great way to save money on your auto insurance.
Age, sex, and martial status – people who are young, men, or single are statistically more risky than older, female, and married drivers.
As you can see there are a lot of things that go into auto insurance quotes. Some factors are under your control and others are not. Your best bet is to simply be a good driver and make safe choices. Anything you can do to prove you are low risk can help!
Most people get auto insurance in order to protect themselves and their vehicle if they are involved in an accident. However many people own antique, collectible, or luxury cars that are only used for show and not driven often if at all. You might think auto insurance is pointless in these situations, however it is still very important for you to have. Many people put thousands of dollars into these cars and therefore it is important to have them covered in case of theft, vandalism, acts of nature, or other types of damages.
Regular auto insurance quotes might not be the best choice for uncommon or rare vehicles. Instead, you should consider purchasing a classic auto insurance policy. These policies are often found through classic car specialists. These companies staff car experts who know about the unique needs of classic cars and other rare vehicles. They know what goes into repairing and restoring these cars, and understand the care that goes into transporting, storing, and maintaining these vehicles. They also understand how depreciation works with these cars compared to newer cars.
When shopping for this type of auto insurance quote you should begin by asking yourself a few questions:
• Am I able to limit my annual mileage in order to get a discount on my insurance?
• Can I afford to insure my car’s actual value rather than the book value used by most insurance agencies?
• Do I need extra coverage due to restoring my vehicle?
• Am I going to attend car club events that would require extra liability coverage?
• Does my car need protection while at the mechanic shop or will my mechanic’s insurance cover any damages?
• Will my vehicle need insurance to be shipped?
If you find that you answered yes to at least three of these questions, than you should consider a classic auto insurance policy. Typical auto insurance policies will not cover these types of situations, because regular cars do not have the investment put into them like a classic car does.
Now that you’ve decided to get a classic auto insurance quote, it is important to understand how classical vehicles are valued so you can be prepared when talking to your insurance agent.
Stated Value – these policies will pay you for the actual cost of any repairs, or the states value of the vehicle, depending on which is less. These types of policies are better than your typical auto insurance policy, but are still not ideal. The higher the states value, the higher your premium. Also, your insurance company is not required to use this value when paying a claim. Rather, they go with an actual cash value that they determine, and base the claim payment on that.
Agreed Value – these are the best types of policies. This coverage is based on an amount that both you and the company agree on. This means it will accurately represent how much your vehicle is worth, including modifications and restoration work. You will be guaranteed full compensation in the case of a loss.
There are many drivers who have been with the same auto insurance provider for many years. However, what many fail to realize or refuse to acknowledge is that whilst they may have started with a decent deal with their provider when they originally took out cover all those years ago, they are no longer getting the most competitive deal.
Despite this, many people continue to renew their cover with the same provider year in and year out without bothering to even look at other low cost auto insurance quotes and plans that could help them to save money on the cost of their cover. The long and short of it is that in the current financial climate none of us can afford to let loyalty to a particular company affect our changes of saving money on the cost of services like vehicle insurance.
Even if you have been with your provider for years it is always worth looking around for low cost auto insurance quotes from other providers, as with the right deal you could make a considerable saving on the cost of your cover. You don’t have to go out of your way to look for low cost insurance, which means that you have nothing to lose and everything to gain. You will be surprised at just how much you could actually save on the cost of your cover by looking for low cost quotes rather than continuing to pay over the odds with your existing provider simply because of misplaced loyalty.
Of course, after looking at other provider to get low cost auto insurance you may find that the price you are paying with your existing insurer is pretty fair and reasonable, which is fine. On the other hand you may find that you could actually save a fortune on the cost of your cover without having to compromise on the level of cover that you take. It is always worth checking to see whether you are able to get low cost auto insurance and no matter which state you live in we can help you to get low cost cover with auto insurance quote from a range of reputable insurance providers offering cover in your area. All you need to do is select your state and you can access the sites of a range of insurers who may be able to offer quotes that could be way more competitive than the price that you are paying now.
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