Best car insurance rates

No matter what kind of coverage you desire, you certainly want to find the lowest auto insurance rate possible. A wise car insurance shopper should become educated about the various factors auto insurance providers used to determine rates. At the most general level, car insurance rates are determined by the estimated “risk” level of the driver. The lowest car insurance rates are quoted to those drivers who are perceived by the provider to carry the lowest risk. Of course, it is impossible for auto insurance companies to know for certain how likely it is you will get into an accident. Instead, providers use a series of calculations that take into account local and national averages.

The factors that may affect your car insurance rates include:

* Type of car you drive – Car insurance providers assume that someone who drives a sports car is more likely to speed than someone who drives an SUV, therefore placing him/her at a higher risk. The insurer may adjust the premium substantially if the deductible is increased, hence reducing the insurer’s exposure.

* The area where you live – Geography, population density, culture and other local factors have an impact on how likely you are to have an accident. Insurance providers attempt to take such factors into effect when calculating your auto insurance rate.

* Your claims history – Obviously the more accidents you have had, the more likely it is that auto insurance providers will consider you a risk, and consequently, you can expect higher rates.

* Your credit score – Making the assumption that a responsible person will be a responsible driver, the best car insurance rates are given to drivers with impeccable credit histories.

* Your age – Statistically speaking, mature drivers have fewer accidents and therefore can expect to be quoted low auto insurance rates. If you are over the of 65 you may however notice as rate increase as some insurers believe that reaction time and awareness may diminish thus creating risk that may outweigh the drivers long term experience.

* How you use your car – The more miles you drive each day, the higher your probability of accidents. How you use your car–for business, pleasure, or simply to get to work–will have an impact on whether you will be able to find a low car insurance rate.

There are certain things that you can do in order to save on your High risk car insurance. Here are a few things that you can do in order to get cheap insurance and save a few dollars on your annual insurance premium bill:

Start early: Start your hunt for an insurance company at least two months before your current insurance expires. This way you would get sufficient time to do a market research and study the ongoing rates in the market. More often than not, insurance buyers are in a hurry and hence end up paying a higher premium because agents are not willing to offer discounts.

Consult multiple companies: It is a myth that all companies have similar premium rates because in reality, there can be a lot of difference between the charges. When you consult multiple insurance companies, you open up your options. You can then easily make a choice depending upon which company is offering the best car insurance rates.

Contact your current insurance company: Many people are fully satisfied with their current company and do not want to part ways, but does this mean that you should be paying additional rate for that? No. When you have taken quotes from multiple companies, contact your existing company and ask for a discount. Tell them that you have received lower rates from other companies and would you be willing to shift. Chances are high that the company would give you a discount because in the end no one likes their business going to the rival.

Think about combining your insurance: You should talk to your company about combining your home insurance and high risk car insurance. This would mean that you would get discounts on both the policies and save additional money. This sometimes also helps you get away with a poor driving record since companies may be willing to excuse it as you are bringing them more business.