Low Cost Car Insurance, What Affects My Rates?

Everyone wants low cost car insurance. With this economy we need to be saving every penny we can. You probably already know that there are many things that affect your car insurance rate. Before you start looking for low cost car insurance all over the web read on! You may be able to save on insurance based on these decisions:

Credit Rating

Many insurance companies charge a person with bad credit a higher rate. Insurance companies assume that a person that is behind on major bills and credit cards is a high risk. And the bigger companies in particular LOVE to ding you if you have bad credit.

Challenge any outdated or inaccurate items on your credit report for removal which will improve your credit score. For a small monthly fee you can hire a credit attorney to help you and in a short time your credit score could jump up significantly.
 
To improve your credit score and get better insurance rates, monitor your credit report and get old things removed. A jump in 50 points could translate to thousands of dollars saved on your car insurance rate. 

Geography

Where you live makes a difference. Rates are higher for people living in high traffic or mid to high crime areas. So if you rent an apartment in an area that’s has higher crime consider moving to a better area of town. Sometimes just a few blocks will make a big difference. You’d be surprised how much lower the cost of your car insurance will be.

Also, tell your insurance broker if you park your vehicle in a garage or a carport. Vehicles that are garaged have less chance of theft and vandalism and might score you a lower car insurance rate.

Accidents and DWI’s

Having a DWI, accident or reckless driving ticket  will put you in a higher risk category. These things can affect your credit too. If you had an accident on your record that’s more than 5 years old then you need to speak with a credit attorney about getting it off your credit report. Otherwise forget about trying to get low cost car insurance.

Vehicle Type

Lower priced vehicles cost less to insure than that status symbol SUV. This is because a HUGE portion of your insurance rate is based on the replacement value of your vehicle. It’s always a good idea to shop for a good car insurance rate before buying a new vehicle. This way you know what vehicles have lower rates and can keep that in mind.

Tickets

A clean driving record that is free of tickets proves to the insurance company that you are above the norm. Some insurance companies even offer rewards for having no tickets or accidents over a set period of time. Ask the broker you work with to factor this in when shopping for your low cost car insurance.

Occupation

A salesperson who drives the freeways every day is a higher risk than the banker who sits at their desk all day.

Make sure to tell your insurance broker how far you drive to work and if you drive your car for your job. Under 10 miles one-way will usually earn you a better rate.

Education

Higher education can get you lower rates. Just being in college is often enough to get you a student discount.
Lo-Jack and window etching can get you a discount
Multiple Cars, Drivers and Rent or Homeowners Insurance

Having a policy with multiple items will usually get you a better car insurance rate. When shopping for low cost car insurance be sure to ask about rates for two or more cars and/or home insurance as a "package."

Finally . . .

Using a  broker is better for you. I’m sure that Progressive is a perfectly nice company. But frankly ONLY shopping 3 competitors does you a disservice. Brokers will shop from HUNDREDS of insurance companies to find you true low cost car insurance quote based on your unique circumstance.
 
Click here to see our list of bad credit auto insurance brokers. One mouse click could save you hundreds of dollars.