Saving on car insurance is not as simple as comparing the price of a gallon of milk or a loaf of bread between your local grocery stores. There are no fixed rates or published prices for coverage since they vary from person to person and between insurers. When insurance companies are determining the cost of your coverage, they start by looking at the factors that make up your individual risk profile.
Calculating Your Risk
To save on the cost of car insurance, you first need to understand what goes into it. Every insurance company calculates your risk differently, although many of them consider the same types of variables in their formulations. In most cases, these include information found in your driving record, your CLUE report, and even your credit report, as well as information about your vehicle and driving habits. Certain types of information can benefit you, whereas other types of information can result in penalized rates. Examples include:
- The number of claims you have made
- The number of traffic citations and car accidents you have had
- The amount of debt you have
- Your history of late or on-time payments to creditors
- The year, make, and model of vehicle you drive
- The types of safety features on your vehicle
- The cost to repair your vehicle in your local area
- The primary purpose of using your vehicle (i.e. business, leisure)
- The crime rate in your neighborhood/city
- The number of miles you drive per year
- The age of the drivers listed on your policy
- Your gender and marital status
Saving on Car Insurance
Research has shown that the data accrued on you is a strong predictor of your risk as a driver. Having a history of multiple insurance claims, poor credit, or reckless driving could indicate that you are at high-risk of making claims against your car insurance in the future. However, all insurance companies treat this information differently. One might pay more attention to a low credit score, whereas another is far more concerned about driving infractions.
That is why we recommend working with an independent car insurance agent here at Mid-Rivers Insurance to ensure you are matched with an insurance company that favorably fits your individual risk profile. Instead of shopping around for rates on your own, we can save you time, offer helpful advice, and help you save – all without sacrificing the value of your coverage. We can also help find money-saving discounts. You might qualify for lower rates if you:
- Combine home and auto insurance coverage with the same carrier
- Insure multiple vehicles on the same policy
- Have a teen driver who maintains good grades in school
- Take and complete an approved driver safety education course
- Meet certain low mileage qualifications – usually driving fewer than 10,000 miles per year
If you are not working with an independent agent at our agency, you could be paying too much for car insurance. Contact us today to request your free quotes and find out how we can help you save. We look forward to serving you soon.
