Wondering if comparing auto insurance quotes online will save you money? The answer is: YES!
Without drastically changing your circumstances, like moving to a better area or buying a better car, comparing quotes online is the easiest way to save money on your car insurance.
Here is a tip for you – Combine your car and home insurance! Insurance companies will bend over backwards and offer you huge discounts.
How is your car insurance rate calculated?
Insurance companies take a number of factors into consideration and the exact formula each insurer uses is different. Some companies specialize in insuring young drivers, women or even high risk drivers. Nevertheless, when calculating your insurance rate all companies will consider very carefully the following:
What car do you drive?
As you are probably well aware, some makes and models are far more expensive to insure than others. Some people go as far as saying that even the colour of you car does matter and insurance for red car for example will cost more. In reality, the colour of your car is not as important as engine size, safety features and devices. It is probably not worth it to go and change your car just to save on auto insurance, but do bare it in mind next time you are buying a vehicle.
How often do you use your car?
If you use your car frequently and even for business, your insurance rates will in most cases go up. If however, you drive your car mostly to go shopping and drive the kids to school, then you will most likely benefit from paying less.
Where do you live?
The area you live is has a huge influence when it comes to auto insurance. Crime rates in some neighbourhoods are 300% higher than other areas in within the same city, so it comes as no surprise that insurance companies are very interested as to where you live and park your car.
Have you got a good driving record?
If you are a careful driver, don’t have many driving tickets and haven’t been involved in accidents, you have a better chance of finding better and more affordable car insurance. If on the other hand you have been caught driving without insurance, driving under the influence and need SR22 or even FR44 in some states, then your insurance premiums will quite possibly double.
Do you have a good credit score?
Most people do not realize how important their credit score is. It is not a factor that has always been taken into account by auto insurance companies, but in recent years your credit score has started playing more influential role. Some think its unfair that being late on a credit card payment can increase your car insurance premiums, but at the same time insurers see such customers as a risk. Its worth to mention that many credit reports contain errors, some statistics even say up to 70%, and such errors can cost you dearly. It is recommended, by industry specialist, to check your credit score at least once a year.