What determines your auto insurance estimate? If you’re looking for an auto insurance quote, then it’s very likely that you’ve asked yourself this question: “what determines my auto insurance estimate?” When you receive an auto insurance estimate, the insurer collects information about you and then plugs that information into their proprietary formula to determine your estimate. This is how your estimate could be so dramatically different from the national average or from other people with the same driving profile.
Your auto insurance estimate depends on several different factors. The most important of these is your profile. Your profile is the sum of your personal habits, your age, your gender, and your driving record. (If you don’t have a clean driving record, you may be able to still get a quote, but it’ll be more competitive.)
Your driving record is extremely important, but in reality it isn’t the only factor that decides your auto insurance quote. Many factors are considered when calculating your car insurance estimate. Factors such as your age and gender affect your premium. In order to calculate your car insurance estimate for women drivers, the insurer will look at how many years you’ve been driving, your age, and your gender. For example, an insurer may rate female drivers higher than male drivers because they are statistically more likely to be involved in a collision. Younger drivers, especially females, tend to have higher premiums because they are statistically more reckless.
There’s also your credit score. In general, insurers will consider your credit score to help determine how much you pay. However, there are many exceptions. Some insurers look only at your credit score if you have good credit, and then they’ll disregard all of your other credit scores. Other insurers use your credit score to decide whether to approve you. If your credit score is low or even nonexistent, you can expect to pay a lot more.
Your driving record will also affect your car insurance rates. For instance, if you have several speeding tickets, or one major speeding ticket, your rates will probably be higher. The same is true if you have three or more accidents. Speeding tickets, although relatively common, are usually the fault of the driver of another vehicle. If you have a clean driving record, insurance companies consider you a lower risk and your premiums will generally be lower.
How do you compare quotes online? One of the best ways to compare quotes online is to visit a website that allows you to fill out several forms on a secure website. Once you submit your information, you’ll receive several car insurance estimates from different companies. You can then review them to see how your rates compare with similar cars. It’s a quick, hassle-free way to get a realistic car insurance rate quote.
The other way to compare quotes is by calling an auto insurance company and talking directly with an agent. Agents have the ability to look at your driving record and give you an idea of what type of coverage you will need based on that record. They can also answer any questions you might have about coverage, so you won’t have to worry about reading pages of coverage literature. Although agents often represent many companies, they are not obligated to tell you anything unless you specifically ask them. If they don’t offer you any advice on the best coverage for you and your vehicle, simply hang up the phone.
Auto insurers are in competition with one another. To attract new customers, many insurers are willing to offer discounts or perks for purchasing policies online. Before you purchase a new car, take some time to research auto insurance costs in your area. You may be pleasantly surprised to find that paying less than you were planning to be more financially sound than buying the car, paying for extras that aren’t necessary, and receiving a great rate from a reputable insurer.