When you compare low cost auto insurance rates online, very accurate, updated information that is specific for the are in which you reside is immediately displayed. Even better, you have the chance to custom-design your very own insurance policy, choose the coverage limits, add additional protection, and communicate directly with an agent or provider to finalize your policy.
Low Cost Auto Insurance
Insurance companies welcome the comparison site industry because it gives them greater exposure than ever before. As far as the consumer is concerned, it also creates a sense of competition for the offering of affordable rates. Although insurance companies cannot guarantee an exact rate for coverage until specific information is gathered, they can instantly process any data you provide. By entering your zip code, you let the database know where you live, and this gives the insurance companies a good starting point for placing you in a risk category.
Insurance rates depend on several factors including your previous driving history and the number of claims you have filed in the past. Every state has its own laws regarding minimal insurance protection that must be carried by drivers of passenger vehicles. When you start your online shopping process by entering your zip code, initial quotes are just a few moments away.
If you visit an insurance agent in person, time is wasted by having to drive to a physical location. The agent is interested in selling a policy rather than working with you to get the lowest possible rates. However, if you choose to do your shopping online, cheapest auto insurance quotes are just a few clicks away. In effect, you force the various providers to compete for your business.
How Rates Are Figured
Insurance companies have a great deal of statistical data available to them concerning traffic accidents and their severity, where these accidents are likely to occur, and which drivers are more accident-prone. Car insurance providers take a close look at the age, gender, and marital status of individuals who apply for a policy. Younger drivers have less experience on the roadways and become involved in accidents more often than older motorists. This is true even if the accident is not the fault of the teen or young adult.
Homeowners often enjoy lower insurance rates because the insurance provider will see them as financially responsible. This is also true for people who maintain a favorable credit score. Those who purchase a vehicle that is considered a safe insurance risk will also be able to obtain lower rates for liability insurance and collision coverage.
Insurance companies use statistical information about the neighborhood where policyholder live. Some areas have bad roads, dangerous intersections, or a high rate of theft.
Insurance shoppers may be considered a high risk if they switch providers often or allow their policy to lapse. All of these factors go into determining the final price of insurance.
Finding The Lowest Possible Rates
The ability to compare auto insurance rates online saves both time and money when shopping for affordable coverage. Everything you need to examine can be displayed on the fact sheet that comes with the quote. You have the opportunity to select the amount of liability coverage that meets or exceeds what is required in your state of residence, choose the amount of PIP or uninsured motorist protection, add another vehicle or driver to the policy, and select one of several payment options.
After a few minutes, this process becomes easy and allows you to perform a complete car insurance comparison. Some of the top insurance providers in the nation actually offer the lowest prices for certain individuals who are deemed a safe risk. This process is much faster than contacting these providers one at a time, whether in-person or over the phone.
Remember To Follow Up
No insurance company will guarantee a price quote generated simply by the entering of a zip code, but you will be able to contact these companies or their agents directly if you wish. One of the great advantages to using an online comparison site for the purpose of securing auto insurance is the ability to link directly with the company to discuss the policy in greater detail. Some providers have a very handy quote form that allows consumers to see how rates are affected when certain amounts of coverage are adjusted.
It is also a good idea to check the different payment plans offered by the companies that display the best rates. You may be able to save even more if you pay a larger amount in order to activate the policy. Longer term policies may also carry a discounted price. A low cost car insurance premium may actually be more expensive if it is split evenly over 12 separate payments.
What You Can Do To Keep Premiums Affordable
First and most important, never let your policy lapse. Even a 24-hour lapse in coverage can mean an increase of as much as 25 percent in rates. Your credit score is important to insurance companies because it indicates the likelihood you will make your payments on time.
If you have points on your driving record, it might be a good idea to wait until they expire before considering a switch to a new insurance provider. The policy will be much more affordable if the motor vehicle record is clean. For those of you considering a new car purchase, don’t forget to look up the safety ratings on the newer models. Although some of these vehicles may cost a bit more to buy, the insurance rates will be lower. Costlier vehicles are not always more expensive to insure.
Save time and money by shopping online for low cost car insurance. The perfect insurance package is waiting for you, and all you need to do is compare rates from competing providers in order for you to find the policy that best suits your needs.