Understanding Car Insurance Quotations

October 29, 2016 · Posted in General Articles on Car Insurance 

Do you ever wonder how insurance companies come up with your car insurance quotations? It may seem random, but in reality several factors are taken into account.

While there are some factors you can change, others are really out of your hands. Here are a few of the factors that go into the calculation of car insurance quotes:

Your Age

Older people will pay lower rate than teenagers who just earned their licenses. This was figured as young drivers have higher rates of car accidents.

The Use of Vehicle

One thing that becomes an important factor is your annual mileage, whether your car is used for daily commute or business purposes.

Obviously, the person with fewer miles fewer days of the week will be less likely to have an accident than a driver who drives more miles, more often. Generally the less you use your car the lower your car insurance quotation will be.

Type of Car you Drive

Your car model figure, cost of repairs as well as its safety statistics are absolutely taken into account when it comes to car and insurance . An expensive crossover or minivan will cost a lot less to insure compare with an expensive sports car.

Your Driving Record

If you have a better driving records you will surely pay less for car insurance than people with many tickets on their records. In other words, those with more moving violations will pay more for their car insurance quotations.

Your Home Address

Insurance companies want to know where you live: what kind of neighborhood it is, how densely populated it is, and how busy the streets are. If you live in a city your Car Insurance Quotations will probably be higher than if you live in a rural area.

Credit History

It is not seldom that your history of credit is factored into your car insurance. Some people have claimed that those with better credit history have fewer car insurance quotations.

Please note, it is better to get four to five quotes before you decide which provider you will choose for your car insurance, since many of them can be vary.

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