Did you ever stop to think about what determines your car insurance rate? When you are getting auto insurance quotes, you may notice that you get different offers from different providers so you may be confused by this and wonder how each company figures out what price to give you. Trueway Insurance in Palm Springs wants you to be able to understand and know where they get their price from. Keep reading to find out what things go into determining what rate you’ll get.
What Determines Your Car Insurance Rate?
It’s easy to get confused about why you get different prices for auto insurance quotes from different companies. It may seem like each provider chooses your rate randomly in actuality car insurance companies determine your rates based on data that tell them how much of a risk you are as a driver and how likely it would be that they’d have to pay a claim to you.
A few things that determine the rate an insurance company gives you are your age, gender, location, the type of vehicle you drive, your marital status, location, accident history, annual mileage, and credit score. If a company thinks you are more likely to be paid a claim that was your fault they are going to charge you more for your insurance policy. If you get an insurance quote that is higher than you’d like to pay there are ways you could lower the price. You could increase your deductible, lower your coverage (which isn’t something that’s recommended), take a safe driving course, have the most up to date safety features in your car, improve your driving record, move to a more rural area, drive fewer miles, or raise your credit score. Each of the contributing factors that determine your insurance rate weigh differently. For example, your marital status won’t affect your claim probability as much as your location does so when insurers are looking at all of these factors they will affect their decisions differently. Not only does each factor weigh differently each individual company weighs them different as well. That is why although these factors don’t change for you with each company you get a quote from the price of each companies policy will. What does this mean? For instance, if one insurance company has fewer claims for the model of care you have they will offer you a lower rate than another auto insurance company that had a lot of claims for the type of car you drive. Because all of the companies calculate rates differently, it is essential to shop around for the best possible rate. One provider may have fewer claims for your model vehicle, and in turn, offer a lower rate than another auto insurer. Due to different calculations by each car insurance company, it’s essential to shop around to get the best price possible.
There are obviously things you can’t control like your age or gender, but the factors that you can control you should make sure you’re paying attention to. You want to keep a clean driving record, buy a vehicle that won’t cause your insurance to skyrocket, and make sure you pick the right coverage for your needs. Also, you need to remember that just because you don’t have perfect rating factors doesn’t mean you can’t get better rates from different companies.
Trueway Insurance is a leading insurance provider of auto insurance quotes in the Palm Springs area. We are here to help our customers obtain affordable insurance and make sure they are getting the best car insurance rate. If you’re tired of getting an insurance quote from multiple providers, call or visit us today for more information.