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Auto Insurance Quotes Online

Updated on December 12, 2010

Pay Attention to the Auto Insurance Rating Factors

Need an Automobile Insurance Quote? Get a Free Auto Insurance Rate Quote

A little Know How can go a very long ways! Saving on automobile insurance requires shopping around. The Internet has brought us a great amount of convenience when comparison shopping for Automobile Insurance. But the real question we should be asking is this: What are we really getting for our money if we purchase insurance online? Is the company going to be there when you need them? Is the auto insurer going to sucker you in with a low cost rate up front then try and jack you up later at renewal time? This is very common!

If you do have an accident will you be able to get someone on the telephone to take your call? I don’t buy insurance online because I am not willing to deal with some guy in Indonesia should I have a problem. I’m very comfortable calling my local agent and discussing my needs. However I’m not above using online quote forms to see if my current rate is competitive. Auto insurance rates are not always about price… they also are about SERVICE. You need to know that the company you choose will be there for you when you need them.

How Automobile Insurance Rates are Determined

Each company will use their own in house method to determine your Car Insurance Rates. For example:

Credit Scoring: Farmers uses an A-Z system in most states. If there are no tickets or accidents, you are 30 years or older and one of the adults in the household has an A-F score you just made the top company Ultra-Preferred. If you have a G-O and are over 25 you qualify for the middle range company which still has great rates, in Texas it is called Mid-Century. If you have a P-Z or are under the age of 25 just get out your wallet, it’s going to hurt a little bit. That is true of all of the companies though, not just Farmers.

According to the United States Department of Insurance the #1 Factor in determining your rate is the frequency of claims. If you have a history of claims your rates will be significantly higher! In their exact words:

The single greatest influence on the rating process is claim frequency. This does not mean how many times you specifically have made an insurance claim, although that will have an additional effect. Claim frequency measures how often an insured event occurs within a group relative to the number of policies contained in that group. Persons sharing characteristics with high claims groups will be charged more for insurance coverage.

Other Factors use to Calculate Your Auto Insurance Rates

  • Your driving history.
  • Your Location – Regions and Cities; urban vs rural areas
  • Your Gender – males have more accidents
  • Your Age – Too old or Too Young will increase your rate
  • Prior Insurance History
  • How you use your vehicle – business, personal, highway
  • Make and Model of your Car
  • Amount of Coverage
  • Type of Coverage

You should shop around to get a price range, the internet makes this easy. Next you should make an effort to obey traffic laws so you will not incur violations that drive up your cost. Consider taking a higher deductible to offset premium costs. The chances of a good driver having an accident are always present, but low enough to make a higher deductible worth the risk in savings. Never purchase a care until you know the cost to insure that vehicle… certain makes and models are stolen more frequently and this will drive up the cost of your automobile insurance. Don’t be late on payments! And keep your credit score in good standing… yes insurers look at credit scores and this will affect your rate!

What might Help Lower Your Cost of Automobile Insurance

  • Multiple car discounts
  • Multiple Policy discounts – home $auto from same company
  • Completing drivers education courses
  • Good student discount for those under 25
  • Choosing low risk automobiles
  • Air bags, safety equipment, and anti-theft devices
  • Low Mileage – the less you drive the better for insurance purposes
  • Asking your Agent for discounts!

Leverage the Net Compare Auto Insurance Rates Online

Searching for Auto Insurance Quotes is easy online!
Searching for Auto Insurance Quotes is easy online!


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