It can be confusing when you get car insurance quotes from multiple insurance companies and get a different rate every time. And though it may be seem like your rate is chosen at random, in reality, car insurance companies like SafeAuto determine rates using sound statistical data to determine how much of a risk an individual would be. They then use this risk to calculate how much to charge that customer.
Factors that determine car insurance rates
This is not an exhaustive list, but the DMV has a list of factors that help insurers determine rates:
- Vehicle type
- Marital status
- Accident history
- Driving record
- Annual mileage
- Credit score
If you are considered more likely to file a claim due to your own fault, you are likely to pay more in insurance premiums. Curious who gets the cheapest car insurance rates? Head over to the DMV’s website.
Ways to lower your car insurance rates
If you are quoted higher insurance rates than you would like to pay, there may be ways you can lower them. You can:
- Increase your deductible
- Lower your coverage (at your own risk)
- Take a safe driving course
- Have the newest safety features in your car
- Improve your driving record
- Move to a more rural area
- Raise your credit
- Drive fewer miles
If you would like to lower your current rate with your current insurance company, give them a call as they may have other ways to help you lower your car insurance rates. Get a free quote from SafeAuto online or by calling 1-800-SAFEAUTO (1-800-723-3288). You could save up to 25% in as little as 3 minutes.