Many drivers find themselves swimming in details when it comes time to purchase car insurance. This is no surprise when you consider how the process actually works with few exceptions, carriers prefer to find out nearly everything about you before they give you a quote!
Understanding which details are weighted more than others, and how the big picture emerges, can be a daunting task. Thankfully, a few companies have made their pricing algorithms public, offering the rest of us an essential glimpse into this confusing calculation.
Some points are obvious. Your driving record is, of course, by far the single most important determinant when it comes to price. Moving violations are less serious than accidents, which are themselves less serious than major accidents which result in significant claims.
Volume counts as well here, as it only stands to reason that three accidents in a year is far more diagnostic than a single fender bender six years ago. The good news is that even the insurance companies offer a chance to grow and improve after a set period of time without any points against you (usually seven years), your record reverts back to perfection.
Where the process gets complicated is when seemingly unrelated demographic information enters. Red cars carry higher premiums than blue cars, for instance, as insurance companies have noticed that the color is associated with more aggressive habits. Your income matters as well, as the carrier wants to know you will be a reliable and solvent customer for years to come.
Also related is the issue of credit as responsible money management has been correlated with better driving and more consistent payment. Finally, personal issues such as your marital status can play a role. It may not surprise you to learn that married people tend to be safer drivers than their single counterparts, especially in cities where drunk driving remains a problem.
Any number of other factors can come into play, from education level to the crime rate in your neighborhood. If you find yourself utterly mystified by the process, it may help to speak with a local agent about which issues play the largest role in your premium.
Often making a few simple changes can result in a savings of 20 percent or more, virtually ensuring you land good coverage at a reasonable price. Simply having a conversation can lay some agents’ concerns to rest as well, so don’t be afraid to advocate for a better rate.
The road to savings begins here. How much will you save? We refer insurance for the following states, Alaska AK, Arizona AZ, Arkansas AR, California CA, Colorado CO, Connecticut CT, Delaware DE, District of Columbia DC, Florida FL, Georgia GA, Hawaii HI, Idaho ID, Illinois IL, Indiana IN, Iowa IA, Kansas KS, Kentucky KY, Louisiana LA, Maine ME, Maryland MD, Massachusetts MA, Michigan MI, Minnesota MN, Mississippi MS, Missouri MO, Montana MT, Nebraska NE, Nevada NV, New Hampshire NH, New Jersey NJ, New Mexico NM, New York NY, North Carolina NC, North Dakota ND, Ohio OH, Oklahoma OK, Oregon OR, Pennsylvania PA, Rhode Island RI, South Carolina SC, South Dakota SD, Tennessee TN, Texas TX, Utah UT, Vermont VT, Virginia VA, Washington WA, West Virginia WV, Wisconsin WI,Wyoming WY