When someone tells you that they have very cheap car insurance
then you need to be cautious. What kind of insurance profile
does that individual have that would give them the benefit of
very cheap car insurance? People will often complain about their
car insurance rates to a friend or neighbor and too often that
neighbor or friend will claim that their insurance is much
cheaper. That may be true for a number of reasons. We don't all
drive the same cars. We don't have the same driving records. We
have different ages of drivers. There are a whole lot of
variables in the criteria that make up the car insurance rate.
Rating Criteria
Credit Reports - Most of the insurance companies use credit as
part of the equation when setting rates. Some people do not
understand the relationship. Actuaries have come up with the
statistics that prove credit to be a significant rating factor.
There is a stability factor and relationship to accident
frequency that coincides with the credit history.
Vehicle Types - This can be kind of tricky. Some newer vehicles
actually have better rates than the older vehicles because of
all the safety features. Some vehicles have high theft rates.
Make sure that you get the vehicle identification number of any
new vehicle purchase and give it to your insurance company to
obtain your new rate.
Rating Territory - You are stuck with this one unless you move
to another geographical area.
Driver Info - The driving records and ages of your drivers will
play a significant part in your rate.
Discounts - There are several ways to discount your car
insurance. Purchase the home policy with the auto policy to get
a multi-policy discount. Good student and drivers training
discounts are available to young drivers with some companies.
Retirement discounts and discounts for taking a mature driving
course are available for senior citizens.
The cheaper rate is really up to you. Do your home work and ask
your insurance company a lot of questions.
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