If you have ever tried to get an online car insurance quote, you probably know how much they can vary from insurer to insurer. There is often little or no explanation for why one company is so much more expensive than another for the exact same coverage, leaving many to wonder what factors go into the pricing of car insurance.
Though it may seem like an unsolved mystery, there is actually a very logical (and complex) explanation. Continue reading to find out exactly what types of details affect your online car insurance quote and how you can find high quality coverage at a competitive rate.
The Amount of Debt You Have
Insurance companies often ‘score’ their customers using information found in a consumer credit report. Although requesting an insurance quote does not harm a credit rating, insurers can gather a lot of information from a soft credit pull that helps them determine a driver’s risk to insure.
The amount of debt you have is just one thing in your credit report that can weigh down your rating. To improve your insurance score and potentially improve your online car insurance quote, consider paying off any debt balances you may be carrying on lines of credit.
The Claims You Made in the Past
You have insurance for a reason: to pay claims when you suffer a covered loss. However, a spotty claims history can increase the premium quoted by insurance companies. While you should never shy away from using your car insurance when necessary, consider that making a small claim, such as one that is barely more than the cost of your deductible, could ultimately result in months or even years of elevated rates.
An Expensive or High-Powered Vehicle
Choosing a vehicle is a very personal decision, especially considering many people spend up to 20 hours or more in their cars each week. It makes sense that you would want a vehicle you enjoy driving, but certain cars can drive up an online car insurance quote.
Expensive luxury vehicles, for example, often cost more to repair or replace after an accident than more economical options. Also, insurance companies may consider high-powered vehicles to be at higher risk of a collision claim, since you may be more likely to drive at high speeds if your vehicle is well-equipped for it.
The Things You Can’t Change
Unfortunately, some of the things that affect your car insurance quotes are unchangeable. While you may be able to trade in your car for a safer or less expensive vehicle, you cannot change your age, driving history or gender. With age, insurance quotes tend to drop since insurers recognize the benefit that comes with experience. You can also take steps to improve your driving habits to prevent traffic violations and accidents that could otherwise affect your quotes. As for gender, men tend to pay more for car insurance than women, but getting those who choose to get married, often benefit from lower costs.
If you find yourself looking for car insurance, start your quote with an independent agency that will shop and compare rates from multiple insurers on your behalf. For more information about the factors that may be affecting your premiums, request a quote from Brian Van De Hey Insurance today.