January 16, 2012

Why Insurance Companies Suddenly Drop Auto Insurance Quotes For Some Customers

Insurance is required for all cars that are on the road. In some cases, it is necessary for drivers to have car insurance, even if they don't actually own a car. Many car insurance companies will suddenly drop auto insurance quotes because of family car insurance and a number of other reasons. Understanding these reasons will help to find the lowest premiums.

Insuring two cars with the same insurance company under the same policy is a lot more affordable than two separate policies because of multi-car discounts. As soon as an insurance company learns that there's a second car, the quotes actually drop in comparison to the expected of it doubling. While the premium goes up incrementally from the first car, it is significantly lower than what the cost of two policies would be.

Family car insurance can also be very affordable. Teenage drivers are notorious for raising rates. However, once they reach a certain age, attend certain driving classes or move out of the house, rates will suddenly drop furiously because the risk of them getting into an accident has been reduced significantly.

Some quotes will suddenly drop because of statistics from the state's highway patrol department. Unsafe drivers within a particular zip code can drive up the cost of insurance. The same can be said about unsafe road conditions and construction areas. If one year produces fewer accidents than the previous year, insurance companies will drop their auto insurance quotes for all of their companies.

Points on a driver's license can bring rates up as well. If a person chooses not to take the class for whatever reason, the points remain on the license. Those points only stay for a certain period of time. As soon as they make their way off the driver's license, some customers will experience a rate drop because they are no longer considered an "at risk" driver.

Other reasons for rate reductions include such things as state laws changing, a customer being with a particular insurance company for a certain time to become part of a loyalty program and much more. Some companies will drop the quotes automatically while customers of other companies find themselves asking for a rate reduction.

At the end of the day, it's a matter of knowing what affects insurance quotes, especially within a particular insurance company. If any of the factors change throughout the course of the policy, it's viable to have the premium lowered. If the insurance company doesn't make the adjustment automatically, they should be contacted. If they don't lower the premium, there are other insurance companies to see if a lower premium is available.