As you shop for the cheapest car insurance, you have probably noticed that the amount you would pay can vary from one company to the next. Car insurance companies base their premiums upon risks which are predicted by statistics. There are many rate factors that can impact car insurance quotes. Among these are demographics and geography, as well as vehicle factors and driver information.
Demographics are population statistics such as a driver's age, sex, marital status, occupation and education. Demographics are used as criteria for determining car insurance quotes due to the fact that certain things are known about certain groups. For instance, drivers younger than 25 years old have the most accidents. For this reason, younger drivers are charged higher premiums.
Geography data such as where you live and where you work are also used as criteria for determining rates. Customers who live or work in areas with dense populations and congested roadways are more likely to be involved in a car accident. Some areas are also susceptible to higher vandalism and theft rates, which can also drives up premiums.
The obvious use of vehicle information would be the year, make and model of your vehicle as criteria for affecting rates. This is true as the underwriter calculates not only how much the vehicle would cost to repair or replace if it were damaged, but theft statistics of various types of vehicles are also employed. Less obviously, miles driven per year and the purpose of the vehicle (work or pleasure vehicle) are also rate factors. Certain automobile features such as airbags and anti-theft devices can result in the car insurance company lowering your car insurance quote.
A customer's driving record is a critical criteria used for determining rates when car insurance quotes are given. Your driving record includes information on moving violations such as speeding ticket and DUIs, and also your claims history. A clean driving record will result in lower premiums than one with moving violations or a history of at fault accidents. The number of years experience a driver possesses is also a rate factor.
In some states your credit rating can be used by insurance companies as criteria in determining the rate you will pay. Check into your credit score with all three agencies. It is possible to monitor one's credit rating with the intention of improving the score and correcting any possible errors it might contain.
Ultimately, there are many different discounts that car insurance companies offer including multiple cars, drivers, and policies. Remain aware of all the criteria which can affect your car insurance quotes as you shop for the cheapest car insurance.