The law requires drivers to carry car insurance. How does one find the best car Insurance rates to fulfill this requirement? One asks for a number of car insurance quotes from different auto insurance companies.
There are several different factors that an insurance company considers when it gives various car insurance quotes. Among these factors are age, gender, marriage status, type of vehicle, and driving history.
The factor of age in setting car insurance rates is both the age of the car and the age of the driver. A young teenage driver tends to drive more than his or her parents. Likewise, an elderly driver may be moving a little slow and have reduced reaction times. Both the teenager and the elderly will have higher rates as a consequence of those age related factors.
The age of the car is a factor in setting the price of Auto Insurance by giving the insurer a value for the car. An older car is not going to be worth as much as a brand new car, hence auto insuranec may be cheaper on a older car, than newer based on value.
While the gender factor is slowly being reduced over time, females are perceived as being more responsible as they tend to more often have others in tow. Younger men in particular are at disadvantage in car Insurance rates due to this perceived difference in responsibility. When the young men marry, the insurance company sees them as stepping up. This step up of responsibility gives the young men a break in their car Insurance quotes and can lower their policy rates.
Insurance rates also are affected by the type of vehicle that is being insured. A hot rod convertible is worth more than the average soccer mom's van. In addition the owner of a hot rod will tend to do more risky driving than the mother with her kids in a van. As a consequence of the higher value of the convertible versus the van, the car insurance of the convertible will cost more than the van.
Driving history, both its length and contents, is another major factor of car insurance rates. A young driver with a very limited driving history will have higher priced insurance than a driver with a longer driving history. However, if a young driver takes care of his driving history, no speeding or accidents, his rates will decrease over time. Only a couple of years down the road, the young driver with a clean driving history will pay less than an older experienced driver with a checkered past full of tickets and accidents.
Your age, gender, marital status, type of vehicle, and driving history all play a part in the price an insurance quote. Some of these factors a driver controls, some he does not. Taking care of the factors he does control will drive the price of his insurance down over time. Understanding the major factors which play into car Insurance quotes will help a driver to identify the right insurance for him. Next time you are shopping for car insurance, analyze the quote through these major factors to determine the best rate for you.