How do I compare car insurance premiums?


Car insurance premiums vary widely from company to company, therefore you need to take your time and get as many quotes as you can. It is not easy and it is definitely not going to happen overnight but it is guaranteed to pay off in the long run.

Determining Auto Insurance Premiums

Auto insurance premiums are determined by a complex of different factors. The state you live in, your age and sex, the age and make of your vehicle are just a few of the things you will be asked about when applying for an automobile insurance quote. All this information is important, since it is used by insurers to assess the risk you pose as a driver, and hence, the possibility that the company will have to pay claims.

Your premiums will be based on the place where you stand in the actuarial statistics of a company. For instance, a driver from New Jersey is likely to have higher premiums than a driver in Idaho. So is a 20-year-old single woman compared to a 45-year-old woman who has had a driver's license for 25 years. Drivers with no driving violations and a spotless driving record are, of course, most likely to qualify for the lowest car insurance premiums.

Let us not forget that premiums are also contingent on the types of coverage a buyer wishes to include. The more coverages you want, the higher the premiums. This is why you must always be consistent with your coverage preferences when comparing different car insurance quotes.

Tips for Comparing Car Insurance Premiums

  • Shop around on the Internet and get access to as many quotes as humanly possible.
  • Compare quotes offered by a number of insurers. You will be surprised to find out how drastic the difference in rates can be between different companies.
  • Don't forget to check each insurer's rating and always opt for the highly-rated insurance companies. Don't fall in the trap of low-rated insurers offering cheap insurance.
  • Ask the insurers you have limited your search to about all the discounts available to you, and then ask for new updated quotes.
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