Some drivers think that because of the continuously increasing prices of almost anything in the market, low cost car insurance quotes are simply a thing of a past, a dream that may never come true. However, a few policy providers out there are making sure that motorists on tight budgets still get to drive safely. Yes, it may be difficult to believe, but low cost car insurance quotes are still possible to find these days. Much like finding a rare piece of expensive jewelry, one must do his research to take advantage of affordable auto policies. Drivers need to know how companies compute rates and how providers offer price-cuts to eligible consumers. If you know how discounts are being offered, you can take the necessary measures to be qualified for these discounts. If you know the factors used in computing rates, you can spend less on auto insurance.
One of the things that companies consider in computing rates is the age of the listed driver. Motorists who are young and who are relatively new drivers are often charged with more expensive premiums. The same way, senior drivers who have more experience have lower rates than drivers who belong to the 25-50 year-old age group. Young motorists, students and teenagers are considered high risk and therefore receive more expensive quotes.
Another factor is the number of individuals who are applying for auto insurance. There are companies who offer cost cuts for drivers who take advantage of multi-user or multi-vehicle insurance promotions. Commonly offered to big households, business organizations, and married couples, group auto policies often come with low cost car insurance quotes.
Of course, the type of vehicle to be insured also has a bearing on how premiums are calculated. High risk vehicles such as two-door sports cars, modified vehicles, and expensive new models should be avoided because these vehicles are expensive to insure. Companies tend avoid these autos because they are prone to car theft and road accidents. Moreover, parts and repair of these cars can be quite expensive. On the other hand, a simple car with added safety devices is sure to merit low cost car insurance quotes. Safety add-ons such as alarms, airbags, enhanced seatbelts and anti-theft locks lower the vehicle’s risk rate.
The concern on the use of credit rating in premium computations is still an issue in most states. However, to be on the safe side, it pays to maintain a good credit score and to pay bills religiously since there are a number of companies that compute rates based on the drivers credit rating.