How does the insurance company determine my premium?

How to Apply for Insurance Quotes

When you shop online for free insurance quotes, you may be amazed at how convenient and efficient it is. However,  it’s important to remember that in order to get an accurate rate from the companies you apply to, you must be prepared to provide the following information:

• Your address
• Your gender
• Your marital status
• Your occupation
• Your age
• The age at which you first obtained your license
• Your driver’s license number
• Your car’s make and model
• Your car’s VIN
• Your contact information

With all of this information in hand, the insurance company you’ve applied to will be able to pull up your driving and  claims history to determine if you have moving violations or claims on record. Most insurance companies will also run what is known as a soft check on your credit score.

Now, if you’re concerned that shopping for insurance will harm your credit, you don’t need to worry. A soft check doesn’t detract any points from your insurance, so you can obtain as many quotes as you would like.

But what else can affect my car insurance rates and determine my premium as either high or low?

Well, the amount of coverage you want and your location are two factors that play a huge role in determining how much you will pay for your insurance. Below you can view the average rates for full coverage and liability in your home state:

Car Insurance Rates by State

As you can see, your location can have a major impact on your rates, which is due to the fact that insurance companies conduct a lot of research. For example, if you live in an area with a high rate of car theft, you can bet that your insurance company knows about it and will adjust insurance policies accordingly for drivers who live in such a high-risk area.

How can drivers reduce their insurance rates?

Is there any way to acquire affordable car insurance or to determine my premiums to be less expensive, even if I live in a high-risk area?

While being a cautious and conscientious driver is ultimately the best way to ensure that insurance companies offer you low rates, you should always confirm that every discount you qualify for has been added to your policy. If you don’t regularly review your policy, you may not even know that you’re missing out on simple ways to save money.

Here’s a list of common insurance discounts that are offered by some of the best car insurance companies in the business:

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In addition to using discounts to lower your rates, you should also make sure that you policy is up-to-date. For example, if your teenage son just moved out of the house and purchased his own policy, you should verify that your policy is only covering the drivers and cars that are currently in your household.

The next time you wonder, Can I buy car insurance and determine that my premiums will work with my budget?, just remember that, while driving safely is always the optimal way to save money on your policy, you should always set aside some time to cast a discerning eye over it.