Thursday, April 09, 2009

Automobile Insurance Rating

By Frederich Mach

Car insurance rates differ greatly from one state to another, from one insurance provider to another and even from one driver to another. It's impossible to expect that the car insurance premiums you are paying will also be the same with your friend's premiums. Car insurance provider rated each policyholder depending on how much risk they would pose for the company. They follow certain guidelines in giving automobile insurance rating.

So what are the reasons why quotes on car insurance differ? Read on to know more about these reasons:

One important thing to remember is that your driving record plays a very significant role on your auto insurance rating. The better driving record you have, the lower car insurance cost you will pay. The key to attaining a good driving record is to drive safely whenever you drive. As much as possible avoid accidents, speeding violations, and even driving uninsured. The great thing about your driving record is that you can directly control this one so as long as you drive safely then I guess you wouldn't have difficulty getting a good driving record.

Moreover, the type of car you are driving and its usage also affect your premiums. Again, these are the factors that you can control. If you don't want to pay expensive car insurance premiums, then drive your cars less than often and do not buy luxury vehicles or sports car.

Lastly, another factor that that set's a person's car insurance rates is age. This sadly, is something you don't have control over. In most cases, vehicle insurance companies set higher car insurance premiums for drivers who are under 25 years of age.

To sum it up, just be aware of these common factors that set your vehicle insurance rates and I'm sure you can save a lot on your premiums. - 2368

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