What personal information can affect my car insurance cost?

Jasmine

Honolulu HI

The following personal factors can affect your auto insurance cost.

Age - If you belong in either 18-25 years old or 70 years old above age ranges, you get a higher premium compared to the drivers in the 26 to 65 years old range. It's because individuals belonging to the 18-25 and 70 years old up age ranges are considered to be high risk for car accidents.

Gender - It is known that women drivers are quoted lower insurance premium as they are generally safe drivers compared to men.

Marital status - A married status is an advantage when you get a car insurance. Married people are viewed as low risk drivers because they are considered more responsible and stable. Also if as married couple you each have your own car, your insurance provider can give you domestic partner discount.

Credit history - If you were able to maintain a good credit history then it can help you get a lower premium. Statistics showed that claims are high to people with bad credit history.

Driving record and car insurance claims history - If you have traffic violation tickets or record of car accidents, which you were at fault, then you can expect your insurance cost to skyrocket. Having history of claims from your car policy can also be a point against your insurance rating.

How difficult is it to find low cost car insurance for a senior citizen?

Billy

Portland, OR

Up to the age of 55, a driver doesn't have to fret about getting any sudden increases in his or her car insurance rate due to age. Past that limit however, car insurance companies start raising the rate. If by senior citizen you mean a driver past this age limit, then it may be a little difficult to find low cost car insurance. Car insurance companies use age as one of several bases for judging how much potential risk a driver may be to them. This is in anticipation of the possible losses in claims they might incur from the driver. Thus drivers are grouped into classes according to age. There are car insurance for young drivers and car insurance for mature drivers and neither of the two can be called low cost car insurance. Inexperience is the complication that raises the car insurance rates of young drivers. Mature drivers get higher rates because of decreased reflexes and senses. Moreover mature drivers are more susceptible to bodily injury. One way mature drivers can compensate for such high rates is to take a mature driver safety course. More often than not a discount is given to a mature driver when he or she completes this course. It's not exactly low cost car insurance per se but at least the rate is comparatively lower.

Can you give me some tips on how to get low cost auto insurance?

Dennis

Des Moines, IA

There are a lot of ways to for you to get that low cost auto insurance. I have listed below some of the ways:

• Insurance shopping - Before you sign any contract or agree on buying an auto insurance policy, make sure that you do thorough insurance shopping first. Auto insurance companies regularly change their rates. The company that had the lowest rates last season could have the highest rates the following season. Therefore, it's important that you check every insurance company to make sure that you choose the one that offers the lowest rate.
• Discounts - Try looking for a company that offers a discount that is applicable to you. Getting a discount is a one of the best ways to get low cost auto insurance.
• Good driving record - Try to maintain a clean motor vehicle record. Every citation you get for violating a traffic rule is assessed by your auto insurance carrier. Each violation has a corresponding point, and the points that you accumulate are translated to an increase in your policy rate.
• Review coverage - If you currently have more than the minimum required coverage, you should check if it's still practical to keep all the coverage that you have. For example, if your car is old, has a low market value, dropping the comprehensive insurance may seem more practical for you. There's no point in paying for extra coverage if you know that you could do without it.

My son graduated from high school with honors. He is now preparing for college. He does not know it yet, but I am planning to give him his own car as a send-off gift. But I guess the cost auto insurance for teenage drivers can be a little bit of a problem. Can anyone here help me in finding low cost auto insurance for teenagers?

Gale

Des Moines, IA

Finding low cost auto insurance for your teenage son is not just going to be a little bit of a problem. It is going to be a big problem, especially if you are on a tight budget. Auto insurance for teenage drivers fall under those that cost very expensively. I believe that next to auto insurance policies that cater to those people caught for drunk driving, auto insurance for teenagers are the most expensive. The reason behind this is the evidence of teenage drivers' recklessness shown by the studies on vehicular accidents done annually. Furthermore, the fact that your kid is not female means that there is already one discount to which you are not going to be eligible, and that is the female driver discount.

However, you should not rush into things and be trapped into buying low cost auto insurance which would not really be able to fully protect your son. You should not settle with some low cost auto insurance policy that does not really have much coverage.

What you should just do is try to lower the cost of a reasonably priced (which, of course, depends on your financial capacity) auto insurance policy by availing of discounts available. There are discounts available for teenagers with profiles such as your son's. Having been a very good student in high school is sure to get him good student discounts. It also helps to have a clean driving record supported by some driving courses. You might also want to consider buying an older car that is less expensive to repair when damaged.

I think that it would help if you contact an auto insurance broker. A broker shall be able to answer your questions in full detail.

Where can I get a low cost auto insurance? I have an existing auto insurance policy, but I feel that I am paying for too much for something I can get for a lower price somewhere else. If I can find a low cost auto insurance, can I change companies midway?

James

Atlanta, GA

James, there are lots of services that are available to you online. All you need to do is to search and make comparisons. Apart from the information that your current auto insurer has, you also need to provide other details of your driving history such as vehicle identification numbers (VIN), driver's license number and Social Security to the other insurer that you're thinking of getting the policy from. You will also need to provide answers about your vehicle, drivers of your vehicle, violations and incidents, discounts, the coverage you want for your vehicle and address setup, including garaging address.

And, yes, James, you can change auto insurance providers midway. Some companies even give you a discount for choosing their services. You need to provide the current coverage plan, and they will top it with a better deal. Companies reward people for staying with them and for being loyal customers, but they are not beyond giving out better deals for those who transfer with them.

You are right in assuming that there are providers who can give a better price with the coverage you choose. Auto insurance prices fluctuate over time. In fact, the average auto insurance prices for Georgia is decreasing in the past years, so different companies are vying to get your business. Really, competition is never this sweet.

I'm trying to figure out ways of saving on auto insurance. Would you have tips that you can share with me, so that I can get a low cost auto insurance?

Charlie

Buffalo, NY

With the recession going on, a lot of consumers are looking for ways to save money and cut down costs. With auto insurance, however, we all need to be careful that saving a few dollars here and there will not affect the amount of coverage that we buy. After all, it will most likely cost more than the few dollars you saved if you get into an accident that costs more than your insurance coverage.

Here are some tips to get low cost auto insurance without sacrificing your peace of mind:

1. Get a yearly policy - sign up for a yearly policy with your auto insurance provider, and you may be eligible for discounts.
2. Increase your deductibles on comprehensive or collision insurance - By increasing your deductibles, you get low cost auto insurance because you are telling the insurance company that you are willing to increase your share in the bill if you do need to file a claim on your insurance.
3. Check your miles - If you know how many miles you drive to work each day, this can also help you get low cost auto insurance. Different mileage classes may mean significant differences in auto insurance prices.
4. Sign up your vehicles with one auto insurance provider - If you have more than one vehicle, you can get low cost auto insurance by using just one insurance company for them all. You may also want to try combining your auto and home insurance. Just make sure you sign up with an insurance company with good financial ratings.

Hope all my tips help. If still in doubt, check out more online resources that can help you find out more about low cost auto insurance.

Is it a good idea to purchase low cost auto insurance?

Mark

Milwaukee, WI

One clear advantage that low cost auto insurance has is its price and availability. With the economy being what it is today, more and more drivers are finding it difficult to afford full or even high coverage. Auto insurance companies have also adapted to the times by offering more low cost auto insurance packages for the common working man or woman who just wants to be able to drive around without having to worry about getting penalized for not being insured.

Low cost auto insurance, however, usually means low coverage. Most policies that fall under this label commonly offer only the minimum requirements set by the state's financial accountability laws. But it can sometimes happen that following an accident, repair costs and medical expenses exceed an insured driver's coverage limits. In such an instance, the driver, despite having auto insurance, still ends up drawing from his own pocket just to cover the excess cost. Once declared liable by the courts, a driver is under legal obligation to recompense the injured party whether he can pay or not. That is why most state insurance regulators advise motorists or any other consumer looking to buy insurance to purchase as much auto insurance coverage as they can afford.

It is really a matter of striking a balance between what your budget can accommodate and what your needs are. Figure out how much auto insurance coverage you really need, then match that with how much auto insurance coverage you can really afford.

Out here in New Mexico, I use my car mostly only during the weekends. I'm thinking of removing my insurance altogether, or maybe there's some sort of low cost auto insurance for people like me who hardly ever drives?

Leslie

Albuquerque, NM

New Mexico financial responsibility laws dictate that all residents who own cars should have their vehicles covered by adequate auto insurance. This means that even if you hardly drive, you are still required to carry 25/50/10 liability insurance. These numbers represent what New Mexico state means by adequate insurance. They are the maximum amount that your insurance provider will pay for the other party's bodily injuries and property damage inflicted by you. $25,000 will pay for the other motorist's bodily injuries, $50,000 goes to hospital and medical care of all the passengers riding in the other motorist's car including him or her, and $10,000 is allotted for public and private property you may have ruined in that one accident.

If you hardly use your car, you should keep your local auto insurance agent informed. This is because there are auto insurance discounts you may be eligible for. There is such a thing as low mileage discounts. These are given to individuals who use their cars less frequently. From the point of view of auto insurance companies, this practice is considered a favorable risk. The reason for this is simply that individuals who rarely drive have a lower chance of getting into costly car crashes. This further translates to lesser chances of filing for claims, which is, of course, to the auto insurance company's advantage. Besides being a violation, it really isn't necessary to take out auto insurance altogether. Just simply go for the discounts, and you'll get the low cost auto insurance that you'd been looking for.

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I have two jobs here in Texas, and I'm still struggling to pay my bills. With the prices of basic commodities rising up each day, how can I cut my auto insurance premium costs?

Selina

Houston, TX

Remember that every state (yes, that includes Texas) requires you to have at least the minimum liability coverage mandated by your state's insurance laws. I'm sure that you don't want to serve jail time should you get pulled over for driving without insurance.

However, there are ways to save. If you have been driving for a few years now and your driving record is somewhat spotless, then you can avail of a significant discount on your auto insurance premiums. Being a good student at school can also lower your policy rates. Also, inquire about driving schools that are accredited by your auto insurance provider, so you may enroll in one of them, which could mean more discounts if you passed certain driving courses.

Another way to cut your car insurance costs is by choosing a simple yet reliable car. Many auto insurance companies offer discounts if your car has extra side airbags or active car alarms. These safety features lower the risk of theft, car damage and personal injury, which mean lower risk for the company, thus decreasing your premiums. Also, if you don't use your car for long-distance travels, then you can avail of the low-mileage discount that many auto insurance companies offer today.

Having multiple insurance policies with the same insurance provider can also give you a significant discount for being a loyal customer through the years. Raising your deductibles can also lower your premiums; however, you should be ready to shoulder that amount from your own pocket if accidents do happen. Contact your local insurance agent for more details about auto insurance and how you can cut certain premium costs. You can learn more ways to save up on your car insurance rates online so be sure to check that out.

Tags: auto insurance premium, car insurance cost, Car insurance discounts, car insurance rate, driving without insurance