Car insurance quotes are evaluated based on various components such as vehicle make, model, year and size. Also, the driver’s demographics affect the rates. Your age, gender, married status, family status, and driving history are all taken into consideration. Since so much information is required, comparing insurance plans manually could be a tedious and timely process. Luckily, smart comparison tools can help you choose the most suitable plan for your needs and budget. Literally, you can compare up to nine plans in two minutes from leading insurance companies in the market.
When you use a comparison website, it’s important to know the factors insurance companies take into the calculation. Don’t take a wild guess, these factors affect car insurance rates:
- Age - Experience develops with time and the chance of errors reduces. Statistically, young, less-experienced drivers are responsible for more accidents than mature drivers. Therefore insurance companies charge more for drivers under the age of 25.
- Number of Drivers - Family auto insurance depends on the number of drivers and their ages. Only add family members that always use the vehicle. We advise on choosing specific drivers because not every driver will significantly reduce the policy rate. If someone in your family drives the car on special occasions, you may consider adding a temporary driver rather than a constant one.
- Temporary Drivers - Do you lend your car to a friend while traveling abroad? Is there a soldier in your family that uses the car only on weekends? In this case, add a temporary driver. Assuming that you plan to add a family member or a friend with a good driving record, don’t choose the “all drivers” option - go with the temporary option. Adding a young driver (not on a temporary basis) to your family plan most likely will increase the cost.
- Marital Status - If you plan to get married in a month, consider to purchase your plan after the honeymoon. Married people are known to have fewer car accidents than singles. Knowing that fact, car insurance companies provide cheaper plans for married couples. If your family status changed, don’t forget to inform your insurance company for a better rate.
- Location Matters - Dense urban areas with dense traffic affect insurance rates as well. Busy cities and highly populated neighborhoods have higher risks of accidents and theft. Living in areas with high theft rates will most likely boost your insurance rate.
- Vehicle’s Features - The make, model, and how old is your car - all influence insurance rates. For more expensive cars, insurance will be more expensive. Models that are more likely to be stolen and cost more to repair, also increase the price. Take into consideration that certain cars designed with safer features. In general, safety parts cost less to insure.
Collision rates are also taken into consideration, especially while comparing old and new cars. The total-loss chance is much higher in older cars than in new ones. The cost of repairs in old vehicles is usually higher than replacement. Because of the high replacement cost, new vehicles are repaired when possible. Therefore, the collision rate of newer car models may also increase the overall rate.
- Driving History - We hope that you maintained a good driving record and that your driving license was not taken away from you. Of course, accidents happen and nobody is perfect without a traffic ticket. Insurance companies forgive traffic violations and accidents, but if your driver’s license was taken away, expect to pay more for insurance.
After a careful review of factors that affect car insurance rates, you must understand the importance of shopping around. Your criteria will be evaluated differently by each insurance company. The most cost-effective plan for your friend, may not be the best choice for your needs.
The best thing about a car insurance comparison site such as Wobi, that it compares identical factors across all insurance companies. You save time and money on car insurance without hidden add-ons. Wobi’s smart algorithm presents nine plans - all on one page. There is no hassle of submitting individual forms. It’s the quickest and most educative method of insurance comparison. To protect a brand reputation, comparison sites represent trusted carriers only and major players in the market.