February 8, 2011

Factors To Consider In An Average Auto Insurance Quote

Whether it's the first time or the fifth time getting an auto insurance quote, several factors are always used to come up with the final rate. Factors including age, location, coverage gaps, accident history, credit score, and whether the vehicle is new or used will help determine the final quote. To get average auto insurance, it is best to examine these factors before applying to get an idea of the range of quotes that will be given.

The first thing insurance companies will look at is age. Young drivers between the ages of 16 to 24 are higher risk and will get higher quotes instantly. After hitting 25, the insurance quote will drop; however, the lowest rates will only happen after hitting ages 40 and 50.

After the insurance companies look at age, they'll at the location of where the vehicle is kept and where the vehicle is driven to. The auto insurance quote will be significantly higher for those who live in high risk neighborhoods or even for those who work in or around those neighborhoods. Also, if the location has a high cost of living, this will factor into the quote.

Other factors that are used in an auto insurance quote include coverage gaps, credit score, and accident history. If there is a lapse in coverage during any point in the vehicle's history, the rate will be higher as it shows that the driver is unreliable with payments. The next thing that auto companies will look at is the driver's personal credit score, as that will reflect the person's overall financial history and capabilities. If the person has a large number of debts, it shows their inability to control their finances, which will make any insurance company nervous. The last thing that reflects the driver's personal behavior is the accident history. If there are a large number of accidents, tickets, or other violations, this also reflects the poor behavior of the driver and will increase the rate.

The final thing to consider for those looking to secure average auto insurance, they should try to make sure they have a used vehicle. Insurance companies know that new vehicles are at a higher risk of theft and often cost more to repair than those vehicles that have been around for years.

While many companies claim to have competitive rates and offer a free auto insurance quote, all of these companies use the same factors to come up with average auto insurance plans. Although there might be a variance of a few dollars in order to appear competitive, calculations used to come up with the auto insurance quote is the same no matter the company.