October 4, 2011

Why Car Insurance Companies May Offer Deals To Some And Not Others

Some drivers seem to get the best car insurance deals from their insurance providers on an arbitrary basis, but insurance companies are very careful to only offer these policies to low-risk drivers. If you’re trying to lock in a great deal on car insurance quotes, it’s helpful to know how insurance companies decide on the costs of their policies and how you can qualify for great premiums.

Insurance companies use actuarial tables and a number of complex algorithms to decide rates and discounts for their drivers. The best car insurance deals tend to go to drivers who can demonstrate a relatively low risk to insurance companies. A common example would be a driver who has a long history of steady insurance coverage with few or no claims. This type of driver would fall into a preferred category to an insurance company, and in order to keep that driver’s business, the insurance provider could offer a very low rate, since there’s a very low risk that the insurance policy holder would ever report a claim. Drivers who have no speeding tickets will also receive preferential rates, as will drivers in certain age groups that are relatively safe investments according to insurance company actuarial tables.

However, a driver’s track record is by no means the only factor in whether or not he or she receives a great deal. Drivers might receive lower than average car insurance quotes simply because they live in a safe area that reports fewer claims than other areas. Low-crime areas, for example, have low car insurance quotes for policies with comprehensive coverage, since the chances of auto theft (a fairly major car insurance claim) are low. Drivers who join several insurance policies together can also get low rates, as can drivers who take special precautions to reduce the chances of an insurance risk by installing anti-theft alarms or extra safety features.

If you’re looking for low car insurance quotes, one of the best ways to limit your costs is to look for quotes online from as many insurance providers as you can find. Good car insurance deals are often available through websites that automatically gather quotes for drivers, as insurance providers compete with one another by offering lower and lower prices on their car insurance policies. Use these websites to evaluate your insurance options. Read through each policy carefully and know about the special car insurance discounts offered by each insurer. Every driver can lock in a great car insurance deal with some perseverance, and by looking at quotes and knowing your risks, getting a low quote can be an easy process.