Car insurance companies are for profit institutions, so they are always going to give you the highest car insurance rate that you are willing to pay. However, this is a very competitive market which is good news for the consumer, since insurance companies also need to attract and maintain customers, so they will also give you the lowest car insurance rate wherever possible to ensure a strong, active client base. While that may sound like a contradiction, that is just the way capitalism works. If you take the time to understand how insurance companies work, you can realize significant savings.
First, it is important to car insurance companies to minimize the risk factors, so you need to familiarize yourself with what they consider as risk factors.
The number one risk indicator is a poor driving record. Unfortunately, if you drive a lot, you put your exposure to getting speeding tickets and other moving traffic violations out there. When you get a ticket, it is best to try to do whatever is necessary to keep the points off your record, as it is these points that insurance companies use to consider a car insurance rate that would make it worth their insuring you.
The best way to do keep those points off your record is, of course, to obey all traffic laws at all times. But accidents happen, speed limits change, the performance level of your vehicle may make it easier to get up to and beyond your intended speed. And, let’s face it, in most cities, police officers have to write tickets to generate revenue for the city and to keep their jobs. An affordable way to combat the inevitability of getting moving traffic violations is to get a legal insurance plan which will send an attorney to court anywhere in the country for you and fight to keep the points off your record and, consequently, your car insurance rates from sky rocketing. This is not as expensive as you may think.
There are also certain vehicles that are inherently high risk in the eyes of the insurance companies and others that are inherently lower risk. When choosing a vehicle, take these factors into consideration before making your final suggestion. Your insurance agent will be helpful in helping you determine which vehicles are associated with lower car insurance rates. A car considered to be a sports car like a Mitsubishi Eclipse will typically have a much higher car insurance rate than a Chevy Impala.
You can also lower your insurance by combining other insurances with the same carrier or by taking advantage of multi-car discounts for everyone in your family. For instance, you might save an additional percentage off your policy if you insure your life, your home, and your car with the same carrier.
There are also discounts offered for students who passed a driver’s training course, people who have maintained loyalty to a company without any claims, people who have minimal travel time, and for married couples with children.
No matter what your rate, there may be a better one out there for you from a competing insurer, so it is wise to compare car insurance rates with different companies at least once per year. There are several online companies that can assist you with this. You might find that you can save way more than 15% by switching to someone else!