The more you understand about any subject, the more interesting it becomes. As you read this article you'll find that the subject of Auto Car Insurance is certainly no exception.
This isn’t old news, but the type of car you buy effects your auto insurance rates. The more expensive or high-performance your car is, the higher your premiums will be. Why? It’s because the cost to repair a luxury or sports car is often significantly more than it is to repair an economy car. It’s a matter of mathematics. Less expensive automobiles are not as costly to repair if they’re involved in an accident. For some higher-end cars and trucks, just to replace a side-view mirror could cost a few hundred dollars.
How Rates are Set
Car insurance companies refer to the Insurance Services Office (ISO) when establishing coverage costs. The ISO is a reporting group for the insurance industry that publishes a statistical manual that rates vehicles based on the manufacturers suggested selling price, its loss history (if the car is not brand new), and in some cases the vehicles safety liability and theft level. The ISO establishes a number between 3 and 27 for each vehicle. The number assigned symbolizes the comprehensive and collision cost/coverage of that vehicle. The higher the number, the more costly it is to cover that vehicle.
Knowledge can give you a real advantage. To make sure you're fully informed about Auto Car Insurance, keep reading.
Now let’s look at a few examples. If you have a car that is considered an economy car, yet the specific make and model you have has a high theft rate (i.e. it is stolen more often than other cars on the road), the number the ISO establishes for the car might be high. For sports cars, the ISO number is normally high because the faster the car, the more prone it is to traffic accidents; and in many cases, the cost to repair high-performance vehicles is significantly more than other vehicles. Sport utility vehicles (SUVs) are also weighed as high-liability vehicles. That’s because studies have shown that SUVs cause more damage in an auto accident than a standard economy or sedan model. In this case, some auto insurance providers increase the liability premiums for high-performance cars and SUVs.
Before You Buy, Research
If you want to keep your insurance from skyrocketing, it’s a good idea to do some research before you hit the dealerships. For starters, ask your existing car insurance company for an estimate on a few makes and models you’re thinking about test driving. The quotes you get back will give you an idea of how much it will cost to insure those makes and models. Having those quotes in hand will also help you keep your spending under control by reminding you that you also need to consider insurance rates when estimating how much you can afford on a new car.
Your age, where you live, and your driving record all play a factor in the cost of your auto insurance. Of course, the ultimate factor is the type of car you drive. The difference between insuring a four-door economy car will be significantly less than insuring a high-priced sports car. So, if you’re shopping for a new car, remember to keep your future auto insurance premiums in mind. It will help you make a more informed and affordable choice.
If you've picked some pointers about Auto Car Insurance that you can put into action, then by all means, do so. You won't really be able to gain any benefits from your new knowledge if you don't use it.
Thursday, January 15, 2009
Consider Auto Insurance Rates When You Buy A Car
Monday, January 12, 2009
Factors Affecting Price Of Your Auto Insurance
The more you understand about any subject, the more interesting it becomes. As you read this article you'll find that the subject of Auto Car Insurance is certainly no exception.
The fees that is charged to you in case of auto insurance is having an increasing chart because of which the number of people searching for cheap auto insurance is increasing day by day. Nowadays it is becoming very difficult to find a cheap auto insurance company. Now we will consider few factors which affect our auto insurance quotes and we will also consider the factors that affect the price of auto insurance.
1. It is a fact that everyone is looking for inexpensive vehicle insurance policy, though an inexpensive auto insurance estimate turns into a nightmarish at the time you file for a claim. Do not avert entire of your intellect on the price of the vehicle cover; you should also consider the cover that is provided by the insurance company.
2. The way you drive also affect the price that company will charge from you, as it becomes very complicated for you to obtain inexpensive vehicle insurance incase you had four speeding fines and three accidents in the year prior to insurance. Every aspect of you and your vehicle is seen by the auto insurance company at the time of offering you quotes.
3. The type of vehicle you drive is also an important factor in determining the insurance quote that you will get. If the vehicle held by you is more likely to be stolen or it will be very expensive to get those vehicles repaired then the insurance quotes given by the insurance company is expected to be much higher than in case of inexpensive car.
Now that we've covered those aspects of Auto Car Insurance, let's turn to some of the other factors that need to be considered.
4. The auto insurance quotes offered to you also depend on the area you live or reside. Different states charge variably in provision of insurance. People who live in urban area usually pay a much higher amount than the people who live in rural areas.
6. One of the most important that is considered by many companies while offering you auto insurance quotes is your credit score. Insurance companies consider those people risky who have low credit scores and charge then high rates.
7. Another important factor that will have an affect on the type of insurance quotes that you are going to get from insurance companies is the claims that you have made in the past.
All the factors mentioned above have a great impact in deciding the amount you would have to pay to auto insurance.
Don't limit yourself by refusing to learn the details about Auto Car Insurance. The more you know, the easier it will be to focus on what's important.
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