What Affects Auto Insurance Rates?

What Affects Auto Insurance Rates?
by Jon Arnold

There are several factors that can affect the rate you receive from an online auto insurance quote. Among these factors are:

• Your age
  

• Male or female?
  

• Your car's make and model
  

• Where you live
  

• The frequency with which you drive
  

• Tickets for moving violations
  

• Accidents
  

All of these factors will have an impact on the price you are charged by the insurance companies. One thing that can offset the age factor is if you have been on your parent's insurance policy and have had no accidents or tickets. This can show an established pattern of good driving and may allow you to have a better rate on your insurance as long as you do not receive any tickets or are not involved in an accident. Being a safe driver does have its rewards.

Also for drivers still in school, many auto insurance companies are offering additional discounts, sometimes up to 10-15% if you maintain a 3.0 grade point average while you are in school. The insurance company may not offer it, but you may find it is available if you ask.

One of the ways of decreasing your premium is by increasing the deductible. This means more money out of your pocket in the event of a claim but it can save money at the time you need it.

A good insurance agent can explain all the charges that are required and the ones that are optional. An online auto insurance quote can give you an idea of what your insurance is going to cost. Although the company that you go to purchase your insurance from sets their own rates according to the claims it has had to pay, this is just one more reason to shop around when you are trying to decide which company from which to purchase your insurance.

The following is an example of the coverage that you can purchase. These are the deductibles and coverage that you should check with each and every insurance company from which you request a quote. If you do not ask about exactly the same deductibles and coverage you may not be getting a quote for the same type of insurance so you will not know if one is cheaper than the other or not.

• Liability coverage: bodily and property damages are covered.
  

• Personal injury protection: covers medical treatment, rehab, lost wages from your job, funeral expenses, legal fees and court costs
  

• Medical: also pays for treatment or funeral expenses if the accident is auto related.
  

• Collision: pays for damage to the car which is covered under the policy in the event of collisions with vehicles, objects, or a rolled vehicle.
  

• Comprehensive: pays for damage or loss of an auto not covered under the above, such as flood, wind, hail, striking an animal, vandals, auto theft, or fire.
  

• Uninsured Motorist: pays for coverage if you are in an accident and it is caused by the other driver who does not have insurance.

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