Car Insurance Quote: Factors Affecting It And How To Reduce The Cost

If you own a car, then it is quite obvious that you’ll look for an auto insurance policy so that you’re covered from the financial looses resulting from an accident caused by your vehicle. You can shop for car insurance quotes online. Most of the insurance companies require basic information, which you need to fill out in their online form; based on this basic information, auto insurance companies offer quotes that gives you an idea of what you need to pay for the required coverage.

Why you need an insurance quote

Though car insurance quotes help you to shop for rates and compare them, yet they are not 100% accurate. However, the cost can vary within 20% of what you’ve been quoted. Therefore, you can very well take a decision on the basis of the offered quotes. If a company is offering you a lowest quote on your chosen coverage, then it is likely to be the most affordable one.

Factors influencing your insurance quote

There are some factors that influence your car insurance quotes. The factors are given below.

• Gender: Usually, insurance companies charge comparatively low premium from women drivers as they’re considered to be more safe drivers than men.

• Age: If you are below 25 or above 65 years of age, then you may have to pay comparatively high premium.

• Marital status: Married persons usually need to pay lower car insurance premiums as statistics label them as more safe drivers.

Though these factors affect your car insurance quotes, yet you can’t do anything to change them. However, you can change the following factors to reduce your insurance quote.

• Type of your vehicle: You’ll have to pay higher premiums if the repairing cost of your car is high.

• Your driving record: If you have a clean driving record, then you’ll have to pay comparatively less for the coverage. Speeding tickets may increase your car insurance quotes.

• Your credit score: Most of the insurance companies will consider you to be at higher risk if you have a poor or no credit history.

• Your occupation: Most occupations require more traveling. As for instance, you may have to pay high premium if you need to travel long distance to work.

How to reduce insurance quote

You can follow these tips to lower your car insurance quotes.

• Increase the amount of your deductibles.

• Buy a comparatively low expensive car.

• You can get discount if you install safety gears (such as, automatic seat belts, air bags, etc.) in your car.

• Purchase multiple policies from the same insurance company.

• Try to maintain a clean driving record.

• Purchase minimum injury protection if you’re already covered through life, health and disability insurance.

It is advisable that you do not take a decision based only on car insurance quotes. You should also take other factors into consideration while deciding whether or not to purchase a particular auto insurance policy. One of the prime decisive factors is the coverage that an insurance company is offering to you. While choosing a company, you should also verify their claim settlement record. Therefore, it can be said that though insurance quote is an important decisive factor, but it shouldn’t be the only one.