Drivers should compare rates from different auto insurance companies before committing to one carrier. Smart shoppers can also take the lowest quotes and ask their preferred company to meet those rates. Even if drivers believe they are already paying the lowest rates, they should periodically check other companies to make sure they aren't overpaying for the same coverage.
There are many factors that can affect a person's auto insurance rates. Generally, drivers with more tickets or accidents on their records will pay more than drivers with clean records. The auto insurance companies classify these drivers as risky drivers and therefore require them to pay more. However, drivers who have improved records over time can eventually pay normal rates. Other factors that can affect insurance prices include:
Age: drivers under the age of 25 pay more for auto insurance
Geography: city or urban drivers will usually pay more than rural drivers or those in less populated areas because of an increased likelihood of accidents; drivers who live in high crime areas are also considered risky
Vehicle: newer cars cost more to insure, as do cars that are more likely to be stolen
Miles: cars that are driven many miles per year will usually pay higher premiums.
Certain personal factors can affect insurance, including gender and marital status. Women and married drivers are considered less likely to have an accident and can often benefit from lower premiums based upon these generalizations. Some companies will offer discounts to multiple drivers within the family or to families who purchase other types of insurance from the same company such as homeowners or life insurance. Some companies also discount drivers who have cars with anti-theft devices.
Some drivers who believe they are safe drivers chose to have higher deductibles, relying on the idea that they will avoid accidents and won't have to file any claims. Higher deductibles mean lower premiums. While this can be a good choice to save money initially, drivers need to be prepared to pay their deductible if an accident occurs.
One of the best ways for drivers to avoid high insurance costs is to keep their driving records clean and free of tickets.
