Car Insurance Rates

There are a number of different factors that are taken into account when an insurance provider determines an individual premium. Each auto insurance company will have a slightly different perspective on what implies risk and for what they will reward their clients. This is just one of the reasons that you see variation in rates between the companies you compare. If you are looking for cheap automobile insurance, make sure you understand the factors that make up the premiums you will pay. The more you know, the more you’ll save.

Factors That Help Determine Premiums

• Vehicle Use
  The longer the distance you commute each day, the higher the premium you will expect to pay. Rates are increased for those who spend more time commuting because of the increased risk of accidents in the time spend in the vehicle.
  
  This is not just true for commuting, but if you put more miles on your car in a given year than the national average of 12,000 miles-- running errands, taking road trips or just visiting grandma-- you will most likely pay higher rates than someone who stays below the national average.
  
  
• Kind of Car You Drive
  There are two factors that influence your premiums dependant upon the type of car you drive. The age and value of your vehicle is a factor in determining their risk. An insurance provider will also take into account national accident reports, repair costs, theft reports, and rate of injury in establishing premiums for your car.
  
  
• Driving Record
  If you are a safe driver with no accidents or moving violations on your record (typically within the last six years, but sometimes more), you are more likely to have a smaller premium than someone with a violation. Accidents, DUI's, speeding tickets, reckless endangerment all contribute to determining premiums. Bottom line is the safer the driver you are, the better your car insurance rates will be.
  
  
• Miscellaneous Factors
  All premiums will take into account a variety of different factors. Sometimes these factors are built into a policy and sometimes they are written in as discounts. These factors include your age, gender, grades in school, multiple drivers on the account, multiple policies on the account, defensive driving classes and more. It is always important to compare car insurance companies to see the different types of discounts offered in order to get the really cheap auto insurance that you are looking for.
  
  
• Optional Coverage
  There are plenty of add-ons that most insurance companies provide. Towing insurance and rental insurance are prime examples of these add-ons. You can also choose to lower your deductible, so less comes out of your pocket at the time of an incident, but then your premiums will be higher, meaning more out of your pocket right now. Collision and comprehensive auto insurance are often also considered optional, unless a financial lender requires full coverage to protect their investment.
  
  In order to get the cheapest car insurance rates possible, compare online and understand what goes into determining the rates as well as know the discounts available to you. At OnlyInsuranceQuotes.com we make that easy. By filling out one simple form, you will have access to quotes from up to eight different carriers within minutes and then you will be on your way to finding the policy that is right for you.