How to Accurately Compare Car Insurance Rates Online

Perhaps you have just learned that you may be able to save money on your car insurance policy by checking online and you immediately hop on the Internet and begin searching. This is not exactly the best way to go about searching for online quotes, but the idea of course, is you can save money by using the Internet to compare various companies in a side-by-side view.

One of the problems that most people fail to do when they compare online quotes is they have no idea what they currently have in their car policy. Therefore, it is hard to know if the prices you are seeing are actually comparable to the cover you currently have. For instance, let’s assume you have full cover on your vehicle because you have a lien against it, but if you get online and being comparing rates to those that are just for liability or the minimum required amount, of course this will be much less than what you are currently paying.

The fact is, in order to compare online rates properly to what you currently have, you must do so by getting a copy of your current policy and looking at the various cover you have in all areas. That way when you go to the website of your choice to compare rates, you can plug these numbers in and get an accurate price quote and then compare that to what you currently are paying. Nine times out of ten, you will find that the online quote is less than what you are currently paying. The main reason for this is the Internet has caused the car insurance industry to become extremely competitive, meaning they are willing to offer you discounts in order for you to buy a policy with them.

Many firms will even offer you discounts for safe driving or if you have had a clean driving record for a number of years. This is truly a great way to find the best prices on insurance by taking the time to compare car insurance via the Internet. Of course, you will want to check out the company that is offering the lower rates to make sure that they are in good financial standing and that they have good reviews as far as handling claims and customer service. Again, the best way to do this is via the Internet, but not directly on the company website because these are often screwed and only the best reviews are listed. Once the company checks out, then you can proceed to purchase a policy and begin enjoying your savings.

Finally, when you compare car insurance online, do not cancel your current car insurance until you are approved and have the new policy in place, then call and cancel your old policy. This prevents any lapse in cover from changing to a new policy because sometimes it may take them as long as a week to get you all set up before you insurance is effective.

Car Insurance Rates

Many car owners avoid taking more auto insurance than the minimum level required by the state simply because of the exorbitant car insurance rates that they have to pay. Car insurance rates are made up of a base rate, after which an addition or reduction takes place, determined by a variety of reasons including those that are beyond the owners’ control.

Generally, an auto insurance company looks at the following aspects to decide on a suitable car insurance rate for each car owner:

Age: According to the US Department of Transportation, the probability of young drivers being involved in car accidents is four times higher than that of the elderly. Insurance companies take the view that young driver are more likely to speed, drink and drive, and not wear their seat belts. Families who have young drivers usually pay higher car insurance rates due to this additional risk.
Marital status: Insurance companies perceive marriage as a reliable sign of maturity and responsibility, causing car insurance rates to be lower.

Gender: This is another uncontrollable factor affecting car insurance rates. Although bordering on sex discrimination, state laws allow insurance companies to raise car insurance rates for men drivers. Based on car accident statistics, young men below the age of 30 are involved in a great number of accidents compared to women in the same age group.

Location / Neighborhood: The area in which owners live plays an important role. Places with higher probability of car thefts incur higher car insurance rates. Likewise for certain states which have high density traffic, such as New Jersey and New York.

The Car: The more expensive the car is, the more its owner will have to fork out in both collision and comprehensive insurance costs. Collision coverage pays for repair costs, and cars with expensive spare parts increase cost. In addition, more expensive cars are more likely to be stolen.

Amount of Driving: Driving more miles than the annual average increases the car’s exposure to damaging elements and risks of accidents or theft. As exposure increases, so does risk, leading to higher car insurance rates.

Driving and Claims History: Car insurance rates increase with the number of accidents and serious traffic violations a car owner has been involved in before. Besides this, an owner who regularly makes claims to insurance companies tends to have greater car insurance rates.

Credit History: Credit scores measure the types of credits taken, outstanding debt and reliability of past payments, among other things. If owners display stable credit scores over a long term and are able to keep their outstanding credit balances low, car insurance rates can be reduced as well.

It is important for car owners to shop around for the best car insurance rates with all the above factors in mind. Although owners cannot help the uncontrollable demographic factors like age and gender, they can still reduce car insurance rates by working on the controllable aspects like the type of car driven and credit history.

Compare Car Insurance Rates

There are plenty of ways to compare your car insurance price quotes. You can drive around and visit your local insurance companies, browse through the yellow pages of directory and call them or you may speak with an expert insurance agent. But the quickest and most convenient way of comparing auto insurance price quotes is to go online. The internet allows you to connect through several insurance carriers without leaving your home. By logging online you can literally find hundreds of quotes. To ensure that you get the best deal for your car insurance, here is how to effectively compare car insurance price quotes.

Evaluate your auto insurance needs. Identify what specific coverage do you need? Do you own a very expensive car or do you only need to financial security in the event of an at-fault accident? Identifying your car insurance needs is essential when obtaining a quote online or anywhere else.

Utilize an insurance comparison website tool. Choose an online insurance comparison tool such as an online insurance broker website that allows you to view and compare multiple rates from different insurance carriers. Usually you only need to answer a few basic questions such as your name, the type of car you drive and your zip code. Once submitted, you will instantly receive several quotes from competing companies.

Choose carefully your auto insurance coverage. Although it sounds good to have an affordable vehicle insurance but you may not call it a quality coverage if you find yourself not well accounted for all the liabilities you need. Consider applying for a plan that includes a minimum liability coverage so that even if you hit a very expensive car you are still protected from any financial expenses.

Not only that you choose a coverage that suits your needs but as well as you buy a policy that fits your budget. If possible, try to find a policy that includes a comprehensive coverage at the best rate.