One of most people’s main concerns when they are looking for insurance is the rate, or premium due, for the policy term. There are many things to consider when evaluating auto insurance rates, such as what factors affect it, and what you are getting for that rate. While each insurance company may have different ways of determining their rates and may look at different factors, there are some general items that most all insurance companies consider. There are different plans and coverages available for different rates at each company. There also may be some things the consumer can do to help ensure they keep the lowest rate possible on their insurance.

Insurance Factors

Auto insurance rates are determined by each company using information that has been filed and approved with the state, ensuring that the methods are legal and not discriminatory. In general things that have been statistically proven to have a correlation with having few accidents will result in a lower rate, while factors that have been shown to have a correlation with having many, or more severe accidents, will result in a higher premium. Insurance rates are highest when a driver is young and has few years of experience, and they are also high as a driver becomes elderly.  They are also generally lower for those that are married as well. Credit may be taken into consideration, as well as the payment history with that particular company (if you have been insured with them already). Of course, your ticket and accident record also will play a part in determining your auto insurance rates. The type, value and age of your vehicle may also impact the rate that you are offered.

Coverages

The kind of coverage that is carried on an auto insurance policy will also impact the rates. Generally, the most costly coverages on an auto insurance policy on a vehicle that is under ten years old are comprehensive and collision coverages. A deductible that is lower, will also result in an auto insurance rate that is higher. Also additional coverages such as emergency road service may be added to the policy for a slight increase in rate. Higher limits of liability will also cost more, however the increase in the rate may not be significant.

Plans

Something that most consumers may not think to evaluate when reviewing auto insurance rates, is the plan that is offered. Most auto insurance policies run on a six month term, however some will run for a year. The rate may look better initially on a yearlong policy, but the insurance company may not be able to adjust the rate for a year if a ticket falls off your record or you have a birthday that would lower the rate.  Some companies also offered different options, such as accident forgiveness or good driver rebates, however these may come at an additional cost.  They may also have fees for not paying in full, or a discount if one does pay the entire premium in one payment.

Consumer Tips

There are several things that a family can do to keep its auto insurance rates low. One thing is to insure more than one vehicle on a policy. This will often result in a discount that is applied to both vehicles. A person should check if the company offers discounts, such as a good student discount, that a driver on their policy may be eligible for. They also should advise the company of any safety features on their vehicle to ensure they are not missing any discounts for anti-theft devices or airbags

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