Car insurance companies use a system of ratings to determine the cost of the comprehensive and collision pars (car insurance coverage) of the insurance policy. Of course, the higher rating symbol, the higher the cost of your car insurance.
More often than not you will find that the cars that we like to drive…. insurance companies don’t like to insure.
Luxury and high performance cars lead the list of high automobile insurance premiums, but in addition to that, costs can be run up for cars that are expensive to repair, cars that don’t hold up well in accidents, and even cars that are more likely to be stolen.
As I mentioned earlier, it is very important that you shop you car insurance around on at least an annual basis. I think you’ll find that the rates you are quoted can vary greatly from company to company. Any type of car insurance, however, is based upon where you and your car fall into the mix of statistics.
You know, really, the bottom line is that the vehicle insurance company is betting the premium they charge against the likelihood of you filing a claim against the policy. So, depending upon the past experience of the insurance company, this will be a large determinant as to the price of the premium to their policy holders.
All of this is to say that the rates for the same driver on the same car can vary by significant amounts from one company to the next.
As you shop around, check all the various major firms within the industry, and also check the independent car insurance agencies as well. Be sure to take thorough notes on all of the rate quotes that you gather and make sure you are quoted like coverage’s and using the same deductible amounts on each……. the old apples to apples theory.
Also, as you are doing your automobile insurance costs research be sure to inquire about any discounts or safe driver incentives the companies may offer which could include:
- Low annual mileage
- Safety and anti-theft devices
- Anti-locking brakes (most all vehicles carry this)
- Good driver discounts
- Multi-car discounts
- Completion of driver training courses
- Non-smoker discounts
- Auto and homeowner insurance with the same company
After you have purchased your auto insurance it is imperative that you keep your driving record on the clean side. No other single factor is as important in controlling the cost of your car insurance.
Stay a stranger to your insurance company in terms of filing claims. Don’t involve your insurance company in minor dents and dings and scratches even if you could collect beyond the deductible. The more you involve your insurance company for minor issues the higher your premium will go.
If you own a business, check into putting your car under your business policy. It may be possible to have your car covered at a business rate instead of a personal rate and maybe save you some money.
Being married even has a positive effect on the cost of your car insurance. Most insurance companies put married couples into a lower risk bracket.
See Also Car Insurance – Types
