Have you been looking for a policy to cover your car? Do you already have insurance, but think the rates have gone up too much? In either case, it can be frustrating to try to figure out how insurers decide to set rates.One you understand a little bit more about the things that the insurers do consider, it can be much easier to shop around for a good deal. First you should understand that insurance companies look at the risk of the cars and drivers when they decide how much to charge for cars and drivers!
It will not do you much good to try and compare insurance quotes with your neighbor or coworker. He or she may have gotten a good deal from one company or another. That may help you, but it may not. Insurers use a number of individual factors when they decide how much to charge for each vehicle and driver on a policy. The company that gave your friend a good deal may not be the best one for you and your family of drivers.
Insurers look at the vehicles you want to cover. Some are considered more or less risky than others. As you know, insurers set rates based upon the risk they take on when they agree to offer you coverage.
What makes one vehicle or another more expensive to insure? The price of the car is one thing. If the car is a total loss, the insurer may have to reimburse you the book value. However, they also look at other things, so the actual vehicle’s value is not the only consideration.
It is more likely that the insurance company will have to pay to repair the car. In that case, they want to know how expensive it is to get replacement parts. If parts are rare and expensive, the insurer could charge more. If the typical replacements are easy to find and more affordable, the insurer may charge less.
Insurers also look at the safety rating of each vehicle. Cars are all tested to see how well they perform in crashes. If one automobile is noted as a very safe car, it will probably cost less to cover. Of course, cars that do not perform well on safety test may be much more expensive to insure.
Finally, insurers do look at the drivers that are named on the policy. The driving record and age of each driver are considered. A middle aged person may be considered fairly safe. However, younger and older drivers may fall into a higher risk category. So, it will probably be much cheaper to cover a 40 year old driver with a good driving history than a 17 year old or 77 year old.
Insurers are different in the way they determine risk too. It pays to compare different companies to make sure you find the one that can offer you the best deal. Online quote forms can make it very easy to compare insurance rates for all of the cars and drivers in your family.