If You Can’t Find an Inexpensive Auto Insurance Quote
It can be quite frustrating to spend the time searching for affordable insurance only to realize that you can’t find an inexpensive auto insurance quote anywhere. If this sounds like an experience you’ve had there are a couple of possible reasons for it. Those reasons might include your driving history, the other drivers living in your household, the type of car you drive, and even your credit report.
When you call a company looking for an inexpensive auto insurance quote they ask you a lot of questions. With so many factors involved there could be a number of things affecting the price you’re quoted, to the extent that all of your quotes seem unreasonably high. Let’s look at a few of these factors individually.
When preparing a quote the car insurance company first begins with the principal owner of the vehicle. They will look at that person’s driving history for previous claims, violations, and anything else that might raise a red flag. In addition, if there are any other licensed adults living in the same household the car insurance company will look at their histories as well. The reason for this lies in the assumption that it’s quite likely all the drivers will at some point be behind the wheel of your car.
If you or the other drivers in your household have a history of violations and accidents, that tells the car insurance company you are a greater risk behind the wheel. In order to reduce the chances that they will lose money on you, they will charge higher premiums. The worse your driving history, the higher your rates will be.
The Type of Car You Drive
In terms of liability coverage, some vehicles are inherently less safe than others. For example, a large SUV with a fairly high bumper will tend to cause more damage than it will receive if it’s involved in an accident with a compact sports car. That greater potential for harm also means a greater potential for liability and therefore, higher rates. Since liability coverage is all about protecting other drivers from you, your rates will be in direct proportion to the amount of damage or injury your vehicle could cause.
In terms of collision and comprehensive coverage your rates will be determined in relation to how valuable your vehicle is. The more expensive it is to replace, the more you’ll have to pay. It’s difficult to find an inexpensive auto insurance quote on high-end cars.
Your Credit Report
Finally, getting an inexpensive auto insurance quote requires that you have good credit. Poor credit signals to an insurance company that you may not pay the balance of your premiums over the course of a policy term. This opens them up to some risk should you have an accident without your premium payments being up to date. While a poor credit score won’t send your insurance rates through the roof, they will add to the price of your premium.