Owning a brand new car is actually the ideal way to get the best auto insurance rates since insurance companies do not expect you to get into accidents due to a corroded brake lining or faulty transmission system anytime soon. Of course, it is not everyday that you buy a new car. When it comes to insurance rates, you may be charged higher on your 5 year old car, but this does mean that you cannot get the best auto insurance rates. The best, in this case, does not mean paying the least amount for coverage; it means getting the most benefits that gives you best value for your money based on the actual condition of your car and your current circumstance.
The amount of premium some auto insurance companies charge can send shivers of fear down your spine. However, take courage because what appears to be so horrible at first glance may not be so horrible after all. The actual premium cost may be considerably lower if you possess some qualities insurance companies consider good for a client to have. Now that seems pretty presumptuous of them, but this can actually be good for you. It can get you the best auto insurance rates you desire.
Now if you are a student you must know that insurance companies offer discounts to students who have good grades. However, be very careful in maintaining your grades because the discount is bound to be withdrawn by the company once you mess up. Moreover, unlike love, age matters in insurance policy. Certain age levels are given equivalent ratings. The rationale behind this is that age influences driving habits. Young drivers are supposed to be risk takers while more mature citizens have a natural tendency to be more careful on the road. On the other hand, senior citizens are high risk drivers, having had their reflexes presumably eroded by father time.
Another factor for getting the best auto insurance rates is your driving history. This makes sense. Insurance companies are naturally wary of applicants who have a long record of accidents or traffic violations. You cannot blame them. Anybody will have second thoughts about giving discounts to drivers who are likely to drive their cars up the electric post a few days after the insurance sale is consummated. In contrast, they will gladly grant hefty discounts to applicants who have unblemished driving records.
Your good standing with credit companies is also helpful in getting the best auto insurance rates. The higher your credit rate, the higher discount you get. Now you know there is actually no cause to fear insurance premiums even if at first glance they may appear horrendously bloated.