AutoInsuranceApe.com If you are looking at different car insurance quotes, you will to know how companies arrive at the final number. Remember that the numbers can vary quite dramatically from one carrier to the next, depending on various factors. Every company must contact their state’s Department of Insurance when deciding on their rates, but this does not mean that the company must offer the best rate for your budget and driving needs. If you want more information about how car insurance quotes are calculated, visit AutoInsuranceApe.com.
Factors That Can Affect Your Car Insurance Quote
There are a number of factors that can change and drastically impact your insurance quote. Some examples include:
- Your driving record
- Vehicle classification
- Annual mileage
- Vehicle usage
- Garaging zip code
Of the above listed factors, your driving record will likely have the biggest impact on your insurance quote. When you are shopping for insurance, each individual insurance carrier will get a copy of your motor vehicle report to determine the type and amount of coverage that you are most qualified for. If you have had a minor violation in recent years, your quote may be impacted. This is also true if you have had major violations within the last 10 years, such as a DUI charge.
Vehicle classification also plays a role when it comes to calculating a specific auto insurance quote. It is frequently believed that newer cars automatically cost more to insure, but this is not always the case. The premiums that are available for each car come from the state Department of Insurance. Vehicles that are more likely to suffer more damage or lead to serious injuries in a crash will cost more to insure, whether they are brand new or older. Certain makes, models, and years automatically have higher premiums if they have higher rates of accidents. Sports cars fall into this category and are frequently more expensive to insure than an average family sedan. Another important consideration is the general demographic that tends to drive the particular type or make and model of vehicle.
The way that you use your car will also have an impact on your quote. For example, prices will differ based on whether you will be using your car to commute to work or if you are driving it for pleasure. Since commuters tend to be more stressed out in general, their accident rates are generally higher. Other types of drivers with higher rates include student drivers and business drivers.
The amount of miles you put on your car each year is another factor that will impact your auto insurance rate. On average, most people in the US drive 12,000 miles per year. If you tend to drive less than that, you may qualify for a lower auto insurance quote since you are in a lower rating bracket.
Your auto insurance rate will fluctuate depending on where you keep your car parked overnight. Areas with higher incidences of theft and vandalism, for example, tend to bring your auto insurance rates up a bit because of the elevated risks. However, your rates may go down a bit if your car is kept in a secure location such as a driveway or in a local parking garage, even if you live in a high crime location. Vehicles of the same make and model that are parked in a more secure neighborhood will typically have lower insurance rates.
Drivers with a good credit rating are statistically safer drivers than those who have poor or bad credit ratings. This is why auto insurance companies usually look at your credit history when deciding on your final quote.