In general, the word cheap is relative to the person. There are people who consider a $300 insurance premium as cheap while the others would need to work hard to pay for that amount. Just like any product, auto insurance can be extremely expensive or cheap. Some experts have told us that it is impossible to compare insurance products and grocery items. Both have different variables that need to be considered to arrive at a certain amount. However, there is a similarity in terms of how people shop to find what they believe as a cheaper commodity.
Every insurance provider uses its own set of guidelines in order to determine the cost of the policy. But this does not mean that the insurers are free to impose whatever they like, because there are certain laws that govern these entities to make sure competitiveness and a healthy playing field. The fact that insurers set their own guidelines, it does not mean that if you get a more expensive quotation from the company A, you will get the same amount from the company B. This is the reason why it is important that you shop around to find which company is offering the best deals.
In terms of cost, it varies from company to company or from state to state. For instance, inexperienced drivers usually get expensive premium rates. There is this universally accepted concept that inexperienced drivers usually are considered as high-risk individuals until such time they acquire enough driving experience or have undergone defensive driving programs.
Because of the fact that insurance is a game of identifying the level of risk in a person, this has become one of the general rules in determining the cost of insurance. Other factors such as gender and age can also play a very important part in the puzzle. Those drivers who are unlikely to file insurance claims will ultimately get cheaper insurance policies. Female drivers, who are often considered as low risk personalities, would therefore, pay out less. Do keep in mind that anything you do that will reduce your risk will always have a positive impact on your insurance cost.
Two of these factors, such as your age or gender will have to remain as-is. You cannot do anything about it. What you can do is to look for companies that despite being a male and a teenage driver, will still give you a chance to get a reasonable premium. You might spend a little time trying to find which company offers the best deals, but I am sure that it is worth your time.
For instance, many companies would offer discounted rates for male student drivers who are performing well in school. There are other ways to reduce your insurance expenditures. See the examples below.
Buying a new vehicle. If you’re out there buying a new vehicle, to save money is to stay away from turbo charged engines or expensive car models. This will have a major impact on how much your insurance would turn out to be. It is therefore, best to pick a more economical and inexpensive vehicle for cheaper rates.
Tweaking your coverage requirements. Comprehensive and collision coverage are probably two of the most expensive yet beneficial type of policies today. However, buying one of them means paying extremely expensive insurance premiums, especially if you have had filed insurance claims for the last couple of years. What you can do instead is to lower your coverage to some other types of policies in order to continue enjoying cheaper rates.
When you request for insurance quotations, make sure that you are accurate in terms of providing information about your mileage usage. If you do so, you will probably get a less expensive insurance coverage. If you were unsure of something, a few questions from your insurance agent would not hurt you or anyone and probably could help you instead.
Do keep in mind that no matter how expensive insurance coverage seems to be, there is always a chance to find cheaper rates and to save money along the way.
