| Congratulations, you have just purchased the car of | | | | The more your car is worth, the higher your insurance |
| your dreams; you worked a great deal, now it is time | | | | quote will be. The logic should be obvious. |
| to insure it. Car insurance is mandatory in all states, and | | | | Car insurance companies are now looking at your |
| must be maintained throughout ownership. Insurance | | | | credit worthiness. Do you have excessive, outstanding |
| quotes can vary from company to company, and | | | | credit, or no credit at all? If so, you are a risk in the |
| there are a few factors that you can control, and | | | | eyes of the insurance companies, and will get socked |
| other factors you cannot. A full understanding of how | | | | with higher insurance quotes. Keeping your credit in |
| insurance quotes are arrived at, will give you the best | | | | check will show the insurance companies you are |
| rate, and maximum coverage. | | | | responsible, both financially, and on the road. As a |
| Factors that cannot be controlled include the age of | | | | result, you will pay lower premiums. |
| the driver. Common sense tells us that a new driver | | | | Your occupation can put you at a higher risk. Jobs that |
| would be more of a risk to an insurance company, | | | | require many hours of driving, or driving in hazardous |
| than an established driver. Therefore a driver in their | | | | conditions, or places will put your quote at a higher rate. |
| early 20's would pay a higher premium than a driver in | | | | Less driving, and exposure to high-risk opportunities, will |
| their 40's. Further, elderly drivers have poor reaction | | | | result in lower premiums. Additionally you want to keep |
| time, and similarly would pay more of a premium. The | | | | your annual mileage down to a minimum. The more |
| ideal driving age would be between 35 to 55 years; | | | | miles you drive, the greater the risk of accident. |
| anyone younger, or older would pay more. | | | | Vehicle theft is a risk factor that can easily be |
| Gender is another uncontrolled factor that insurance | | | | minimized. Most companies will give you a discount for |
| quotes are based on. Statistically, insurance companies | | | | having better security for your vehicle. An alarm, or |
| see females as safer drivers than males. As a result, | | | | another approved anti-theft device will usually result in |
| female drivers pay less than their male counterparts. | | | | some discount. Some companies may insist on having |
| There are factors, which we can control, namely the | | | | such devices installed on more expensive and |
| amount of traffic tickets and accidents. A ticket is a | | | | desirable cars before they even consider offering you |
| violation of law that could potentially result in an | | | | a price. |
| accident. Insurance companies frown on this, and will | | | | Some companies look favorably on drivers who have |
| penalize the driver with higher rates. Similarly, accidents | | | | taken a defensive driver's course. They see this as a |
| could indicate a pattern of behavior; as such the driver | | | | commitment to safer driving, thereby lowering the risk |
| is penalized with higher rates. | | | | of accident, resulting in lower premiums. |
| Where you live is another controlling factor that | | | | Keep in mind these are just general guidelines, and the |
| effects insurance quotes. Living in a rural area, puts the | | | | difference in price between various companies can be |
| driver at much less risk of accident or theft as | | | | significant. What one company may consider a |
| compared to living in a city. As a result, city drivers will | | | | high-risk factor another company may not view as so |
| pay a larger premium than rural drivers with very few | | | | important. The bottom line, keep your credit in check, |
| exceptions. | | | | be careful on the road and choose a car that fits your |
| Want to drive a Porsche 911 Carrera? It will cost you. | | | | budgets. |