Finance

Apr 30 2017

King of Cheap Car Insurance Quotes • Auto Insurance Comparison #auto #trade.com


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Would you like to know the basics of car insurance? Learn all you need to know about vehicle coverage types and deductibles. Continue

Learn how to find the cheapest car insurance premiums possible. Get educated about various discounts you might be eligible for and how to lower premium as a young driver. Continue

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How Quotes Are Calculated

When you start to compare are insurance quotes on a mission to find the lowest possible premiums, it is important to understand how your quotes are calculated and why these quotes can differ dramatically from carrier to carrier. All auto insurance carriers licensed to do business in your state must answer to the Department of Insurance when filing rates, but this is does not mean that a multitude of personal factors will not affect your base rate when you retrieve quotes. If you are wondering why your insurance is so high compared to state averages reported in your area, or your cousin s rates are significantly lower than yours and you want answers, here is your consumer guide to understanding auto insurance rating factors.

The Difference Between Fixed and Variable Factors That Affect Car Insurance Price

When you are shopping for affordable auto insurance, the easiest way to save money is to compare auto insurance quotes from several different companies licensed to do business in your state. While each of these companies have different base rates that are based on the demographic the company has decided to target, all of the carriers will use the same combination of rating factors to calculate personalized rates for applicants.

Some of these rating factors are fixed factors that you cannot control, and other factors can be changed if you make the effort to change lifestyle and driving habits. Identifying the fixed and variable factors, how they affect your rates, and how the changeable factors can be changed in your favor will help you get the lowest possible auto insurance premiums. Read on to distinguish between all of the rating factors that reputable auto insurance carriers use.

The Rating Factors That You Cannot Change

Age plays a major role in how much you will pay for your auto insurance due to statistics. As you read about rating factors, you will learn that auto insurance actuaries and underwriters rely on statistics to calculate rates. If the statistics of accidents are high in a specific age group, rates for applicants assigned to the age group will be higher.Young drivers under the age of 25 have a high incidence of accident, and this is why inexperienced drivers pay the highest rates. Once you gain experience, you can expect to see your rates decline at 25 and then gradually until you are 65. Once you reach a senior age group, premiums tend to rise once again.


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