Factors to Consider in Car Insurance Rates

Heard a neighbor got a great car insurance rate and thinking of jumping to that insurance company to save money? Think again – several factors go into auto insurance that makes each quote as unique as the individual.

Are you looking for car insurance, and figured you would go with your neighbor’s car insurance since they got a good rate? Think again. Just because your neighbor got a good rate for car insurance, doesn’t mean that the company will give you the rate they gave your neighbor. Many different factors go into determining your coverage. Here are just some of the factors that help determine the cost of insurance offered to you:

Credit Rating
Those that have developed good credit over the years now get to start reaping a reward. Studies have shown those with better credit ratings are less likely to have accidents, thus creating lower rates for drivers with better credit.

Driving Record
Insurance is priced based on the potential likelihood that you have an accident. Therefore, if you’ve had tickets in the past or driving accidents, expect your insurance to be higher than someone else. This also applies to drivers who may be newer at driving – as the risk is higher.

Sure, your friend may have the same type of car, but what about the year? Is the model a different color or body style? If so, expect the rate to potentially be at least slightly different. Why? Studies have shown cars, such as coupes, are sometimes more likely to get into accidents. What’s more, sometimes a different year or model has additional safety features driving the cost of that car’s insurance down.

Other Factors
In addition to all the other factors listed above, some other factors also exist. Are you older or younger than your friend? Car insurance rates tend to go down at the age of 24 and go up if an individual is older. Car insurance also tends to be higher for males than females. In addition, if the individual’s home or other vehicles are with that company, he or she may qualify for an additional discount.

As you can see, insurance rates can be customized, based on coverage just as they are on the individual. Many factors go into determining what type of insurance will give you the best vehicle. To find the best rate for you, find an insurance agent who can provide you with multiple quotes from several different insurance companies.

Milla Tawnie writes for Orlando auto insurance and Orlando home insurance agency, the Florida Insurance Group. To learn more or to get auto and home insurance quotes, visit FloridaInsurance.com.

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