People love to complain about how much they are paying for their auto insurance rates, when, in fact, affordable auto insurance is readily available for anyone. Being a smart driver is all what it takes. Although the term “affordable” is relative to the driver, the type of vehicle he is driving and the location where he drives, we see no reason why many drivers continue to enjoy lesser rates while others could not. Did you know that some of them are enjoying as little as $30 a month?
In order for you to take advantage of discounted rates, you need to understand how insurance provider compute the costs.
Insurance providers use actuarial tables to determine your insurance rates. These highly complex algebraic equations could compute the probability of a driver to be involved in an accident. Actuarial tables are not based on prophecy and are not fair all the time, but, unless a far better solution to compute risks has not yet arrived, underwriters will have to continue using this system forever. As they say, actuarial tables give them a scientific way of determining the odds.
Factors That Make Up the Equations
There are common factors that will always be a part of every calculation such as driving experience, gender, age and so on. It is normal for young male drivers to suffer high rates because they are considered as high-risk drivers. This is just how insurance providers consider them, and you can do little to change that. Most of them, if not all, are risk takers, and this factor alone surges up the premiums. Even if they grow older, incidents involving male drivers are far higher than those with women. This is the reason why car insurance costs for women are relatively low-priced.
For student drivers, good grades can be a passport for a low cost car insurance. Insurance providers think that students who have good grades would turn out to be responsible drivers. High school and college students alike can enjoy these benefits, and many are encouraged to participate.
Furthermore, the type, model, brand or age of the vehicle you are driving matters. You may or may not know, but if you drive a sports car rather than the common four-sedan car, you will be likely to pay high rates. A sports car involved in an accident is not something insurance providers could take for granted. It should require them to shell out a good deal of cash, and they do not like this to happen all the time, or else they will be out of business in no time. Imposing high insurance rates to these types of vehicles is never meant to deter people from buying or insuring them. They do this as a way to recover, at least partially, of what they are about to pay if claims are filed.
The best way to save insurance cost is to buy the “common” car, install anti-theft devices, maintain a clean driving record or perhaps enroll in a driving lesson. Common sense would tell us that if u do that, you are likely to get what you want.
