July 23, 2010

Factors That Go Into Creating Your Auto Insurance Quote

When you apply for an auto insurance quote online, insurance companies use a number of criteria to figure each element of your policy-especially your premiums. There are hundreds of quote factors that affect policy costs, and knowing even a few of them help a driver to find lower quotes.

As most drivers know, insurance companies pay the most attention to a person's driving record, and this is the single most important controllable factor in your policy's cost. Any traffic violations and accidents will cause the biggest jumps in insurance premiums. If you've had a few marks against your record, you can often diminish their effects on policy cost by taking special courses (your insurance provider will have more information about this) or by adjusting your coverage. Don't lower your coverage too significantly, though, especially if you're a frequent driver, or you'll run into serious financial consequences if you ever need to make a claim. Insurance providers also look at the type of car that a driver owns, and the most statistically dangerous vehicles carry the highest rates. Sports cars, for instance, are notoriously expensive to insure, since they're fast, expensive, and any accident involving them will carry heavy claims on the driver's comprehensive and personal injury coverages. The quote factors are most set against drivers with bad records who decide to drive these expensive, unsafe vehicles.

Another of the major quote factors is a driver's zip code. The state that you live in will necessarily affect your auto insurance quote, due to the different standards for insurance from state to state and different laws governing insurance providers. Your zip code also gives insurance companies some insight into the possibility of certain types of claims, particularly auto theft. If you live in an area with a lot of car theft, you'll have higher rates for comprehensive coverage than drivers in relatively less risky areas.

There are dozens of other quote factors involved in insurance premiums. Insurance companies look at everything from a driver's gender (men pay more than women) to age (older and younger drivers pay the most). Many of these factors are very difficult to control. However, you can talk to your insurance agent to understand what your major risks are, and by taking actions to diminish those risks, you'll be able to find a lower auto insurance quote. Keep an eye on your policy's costs throughout the year, and regularly check online for quotes from various insurance providers. This will help you to develop an understanding of your car insurance policy that will allow you to find great coverage at a great price.