March 15, 2011

Why Auto Insurance Quotes Are Higher For Some Drivers Than Others

Most drivers are aware of the fact that automobile insurance is priced differently for various groups of drivers. Insurance companies actively promote this fact. They might offer special discounts to drivers who can show themselves to be of particularly low risk, and likewise, they'll penalize riskier drivers with high cost auto insurance policies. Understanding the exact mechanisms at play can make it much easier to determine which car insurance company to use, so every driver should spend a few minutes considering their insurance risks and looking into ways to keep low-cost policies.

The reason that insurance companies price automobile insurance policies differently is because their costs are different for certain groups of drivers. Remember, insurance companies legally have to pay for insurance claims, so they have an interest in lowering the number of claims that they handle annually. The easiest way to do this is to rely on actuarial statistics that effectively estimate the chances of an accident. For instance, younger drivers often pay for high cost auto insurance policies because their age groups are relatively risky; more accidents occur from ages 16-22 than from ages 40-55, so drivers in this age group will see higher than average costs. This is not dependent on the specific actions of the driver, although being involved in an accident or receiving a traffic citation is also a very fast way to see increased insurance rates.

If you're worried that you're at high risk and receiving a high cost auto insurance policy, there are a few things that you can do to find out for sure. You can simply call your automobile insurance company and ask, as they'll usually give you a straightforward answer. You can also go online and check your insurance premiums against a few car insurance quotes from competitor companies. If you're a high risk driver, the rates should be high regardless of which company you use. However, if your insurance company is simply charging an expensive rate, this will be reflected in their competitors' quotes.

Drivers who are considered high risk can also find lower car insurance quotes by taking steps to mitigate those risks. The best way to do this is to take a driver's education course that's recommended by your insurance provider. You can also ask about additional discounts, try to find a statistically safer vehicle, or lower your coverage limits and deductibles. However, the best way to ensure low rates is to keep a good driving record. The safest drivers receive the lowest rates, so if you're trying to keep your costs low, do whatever you can to stay in the low risk categories.