Auto Insurance Companies: What they look for


People are always trying to save money, especially with an economy like we have today. It isn’t getting any better, so we must cut back in a lot of various areas. Once people usually don’t think about is their auto insurance. Yes, it is necessary to carry auto insurance in order to drive legally in most areas, but you can find better rates or better companies.

There is the possibility you may find even more coverage for less then what you are paying now. But auto insurance companies look for certain things in their consumers and give rates based on these things. So, what are the criteria that will affect my ability to get affordable auto insurance with great coverage? Here is some information for you!

The main thing that will impact your ability to get great coverage for a lower rate is your accident history and driving record. Auto insurance companies prefer to insure people that will not get into a lot of accidents and collisions. This way they will make more money off of you. That’s what all companies want to do, make money. So, if they see a lot of accidents and collisions in your driving history they know that they chances of them making a profit off of you are slim to none. When they see this, they are going to jack up the price for covering you.

Some companies will slowly lower this rate if you start keeping a clean driving record. Not all will do this, but some. If they see you are improving and driving safely, they will lower your rates to keep you as a customer while they are now able to make money off of you. In this case, it’s a clear win-win situation and everyone’s happy. Be aware though that not all companies will do this. You may want to inquire as to a company’s policy about this if you have a very bad driving record.

As well, if you get into even more accidents, you auto insurance premium rates are going to go through the roof. The auto insurance company just lost a lot of money to pay for your accident and hospital bills so they want to make that money back.

Your age will also affect your auto insurance rates. A young driver, that is drivers 25 years old and younger, generally will have more expensive rates then people in their 40s.  They have little to no driving experience, are more frequently distracted, are more risky in their behaviour on the road, and are statistically more likely to be involved into an accident or collision.

Elderly drivers as well are affect by age. Possibly because of their deteriating health and eyesight, elderly drivers are also more statistically prone to get involved into accidents or collisions, so if you are 65 or older, you should expect your auto insurance rates to be much higher than that of someone in their 40s.

Another thing that will affect auto insurance rates is your credit history. With a poor credit history, auto insurance companies will be reluctant to insure you because, simply, you don’t have a habit of paying your bills. If you don’t pay your bills, they don’t make money.

So, before you step out there to find a more affordable auto insurance rate, which is possible, do remember these factors, or you may be quite surprised at the quotes.