A number of consumers are interested in taking steps to keep their coverage costs down, which means that the question of where to find the cheapest auto insurance coverage is a very common one. Each company offering auto insurance coverage since its own rates for its customers. The cheapest rates are offered to buyers who present the lowest level of risk to the auto insurance company.
How Auto Insurance Companies Determine Risk
When a driver applies for auto insurance coverage, the insurance company gathers information to determine how much risk here she presents for coverage purposes. The information gathered may include some or all of the following:
- Marital status
- Number of years the applicant has been licensed
- Credit history
- Number of accidents/moving violations on the applicant’s driving record
- Make and model of the vehicle
- Where the applicant lives
The information provided by the auto insurance coverage applicant is used to determine what category the particular driver should be placed in. While most auto insurance providers collect the same type of information from applicants, each one determines independently how much weight it will give to a particular factor. For this reason, pricing for the same type and level of coverage can vary significantly between providers.
Categories for Auto Insurance Coverage
There are three basic categories for auto insurance buyers: Standard, Preferred and Non-standard.
Most drivers to apply for coverage are placed in the standard category. This refers to drivers who present a moderate level of risk for coverage purposes. They drive dependable, family cars and although they may have been late a time or two with their premium payments, keep their coverage up to date.
Drivers who have preferred status for auto insurance coverage purposes have been licensed for a number of years and have remained accident and moving-violation free during that time. They always pay their premiums on time, as agreed. These drivers qualify for the best rates.auto insurance companies can provide.
Non-standard drivers are considered high risk for auto insurance purposes. They include young and/or recently licensed individuals, as well as drivers who have been involved in several accidents or who have accumulated multiple moving violations. Drivers who choose to drive sports cars may also be placed in high risk category. As a result, they are charged the highest rates for coverage.
How to Find the Cheapest Rates for Auto Insurance</b.
If your goal is to find the cheapest rates for auto insurance coverage, you need to be prepared to get quotes from multiple providers. Going online is a very effective way to do so, since you can shop for coverage at any time of the day or night.
To get a quote, you would simply fill out an online form with some basic information and the insurance company will get back to you with an estimate of how much it would charge you for the type and level of coverage you need. When you receive the pricing information, make a point of looking over it carefully before you make a decision about where to buy your auto insurance. Price is only one factor, and you will want to make sure you are getting a good level of coverage as well.