Before giving you an auto insurance quote, insurance companies look at a lot of different things. Here are some of the basics that go into putting together your auto quote:
Age: Insurance companies like drivers who are older and have more experience. The Centers for Disease Control and Prevention (CDC) says that 16- to 19-year-old drivers are four times more likely to be in a car accident than older drivers. As a young driver gets older, their rates tend to go down.
Type of Car: Cars that are brand new, expensive, and fast cost more to insure than cars that are older and go slower. Check to see if the car you want to insure is a high-risk car, which means it gets broken into or stolen a lot. In 2004, the 1995 Honda Civic was the most stolen car in the US, according to a report from the National Insurance Crime Bureau that came out in November 2005. Talk to your insurance agent about this before you choose a car. How much car you can buy might depend on how much it costs to insure.
Driving Record: If you want a lower rate, you need a clean driving record. If you do break the rules, you'll have to go to a driver's education class. This could help you get a better rate. Some insurance companies won't cover people who have a very bad driving record.
Credit Score: You're right, that is. Score on credit. When you buy insurance, your credit score is also taken into account. It is called a "score" for insurance. Studies show that how a person handles their money is a good indicator of how likely they are to file an insurance claim. Because of this, insurance companies charge a premium based on the risk they are taking on. Statistics show that people with lower insurance scores are more likely to make an insurance claim.
Deductibles: The higher your deductible, the more you save on your premium. You should go as high as you can.
The rules for underwriting are different for each company, so get more than one quote and compare them.
