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Factors that decide best auto insurance rates

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Irrespective of how good and experienced driver you are there are always chances of minor accidents that a car owner might have to face. Repairing the damaged part of a car or repaying for damages caused by a car can be very expensive and time consuming. Auto insurance gives the car owner the coverage for all the financial liabilities that a car accident might cause. Starting from theft damage to property damage, auto insurance provides a breather to its customers. In most of the countries driving a car without any kind of auto insurance attracts penalties. 

Insurance rates 

Insurance companies charge car owners a certain amount as premium for coverage of their automobile liabilities. These insurance payment amounts might differ from company to company. These insurance rates are based upon certain factors and a car owner can avail the best automobile insurance rates by complying with the terms and conditions set by the different companies. 

Factors that help in getting the best insurance rates 

  1. Car model- Insurance rates are higher for expensive models. This because the company needs to recover the cost of repair and replacement of the car parts that might be costly in such cases. A car owner can avail the best insurance rates by selecting models that are not very expensive.
  2. Type of cars- Cars which are used for racing and long distance driving attract greater insurance rates than normal cars. Since these cars are more prone to accidents and require greater maintenance so insurance companies charge more for these cars.
  3. Age of the driver/ car owner- Senior citizens attract more insurance rates than younger drivers. Elderly people are considered high risk drivers because of the different age factors and so have to pay higher insurance premiums.
  4. Driving Experience- An owner who is also a skilled car driver will attract discounts on his car insurance. A driving licence and recommendable car driving history without any major mishaps or faults will be beneficial in getting the best car insurance rates.
  5. Use of car- There are two main usage factors that determine the car insurance rates. First is the fact that how far and often a car is driven. The greater the usage more is the premium of the insurance. Secondly a car or automobile used for business will be attracting greater insurance rates.
  6. The amount of coverage chosen- Greater the amount of insurance coverage more will be the insurance rate.
  7. Deductible amount- Higher the amount of deductible, lower will be the insurance rate.
  8. Current insurance status- A new car owner or driver will have to pay higher insurance rates than a skilled and experienced driver.