Auto insurance rates are not fixed. The insurance offered vary from customer to customer for the same coverage offered by the auto insurance company. Auto insurance companies are looking to make a profit in their business and the best way they can manage that is by having safer customers who pay the premium but seldom claim insurance. In their quest for such customers, auto insurance companies use various strategies, usually offering discounts to customers who are considered relatively safer than others.
The type of car you own greatly influences the auto insurance rates for very obvious reasons. The damage repairs are more expensive for a sports vehicle compared to a family sedan. In fact, the element of risk and thereby, the chances of an accident are greater in case of sporty cars which can move faster. So if you want low insurance premiums choose safe mid-size sedans. Similarly, if you have navigation mechanisms, safety devices and anti-theft systems installed in your car, it will reduce the risk of your card being involved in an accident or being stolen. Since the chances of your claiming insurance go lower, you can expect lower insurance rates.
The type of driver could determine the auto insurance premium as well. If you are a middle-aged executive, who drives to work regularly, there are greater chances of your car being involved in an accident. Therefore the insurance rates will be higher. On the other hand a senior citizen or a housewife, who drives the car only once in a while, can expect far more attractive insurance rates.
One of the most important attributes of a safe prospect from the insurance companies’ perspective is the drivers’ credentials. If you have often claimed insurance in the past, you are likely to be considered as a risky driver. So you can expect higher premiums. On the other hand, if you have no traffic tickets in the past few years and no cases of jumping signals, speeding etc. you are a safe driver who could expect lower insurance rates.
Apart from the vehicle and the driver, the auto insurance rate also depends on how much business the company is receiving from the client. If you have a fleet of cars or you want to club the auto insurance with your house insurance, you can significantly lower the premiums thereby making quite a great saving on your insurance costs.
