Your auto insurance is calculated according to your age, driving history, and type of car that you are insuring.
If you are a teenage driver, your insurance will be really expensive. The only way to fit into a less expensive auto insurance category is to let your mother put you on her insurance. If your mother has a good driving record, that means free of accidents for the past five years and free of citations, your insurance as a teenager will still be expensive but less expensive then if you went to get insurance on your own at say, eighteen. Age is more problematical in getting car insurance at a reasonable cost than gender.
Your driving history will also determine how expensive your auto insurance policy will be. A tip to getting better rates on your auto insurance is to pay off any parking violations that you may have outstanding. Before trying to negotiate a better deal on you auto insurance policy check to see whether your driving license has any marks against it. And, believe it or not, make a credit check on yourself. If you turn out to be a poor credit risk, your auto insurance policy will not cost you less if you try to switch insurance companies for a better deal. That means that if your auto insurance policy is with a company that your parents had and you are now on your own, don’t assume that you can get a better price with another agency, always check your record before making a change in insurance.
The type of car you drive will also increase your costs for auto insurance. If you drive a sports car, you will pay more in auto insurance then if you don’t drive a sports car. Don’t assume that a particular make of car is designated family sedan or sports, always ask.
Buying auto insurance can be a tricky proposition if you’re not properly informed. You need not pay too much for coverage. Different factors come in to play. If your vehicle is older; then it may be better to settle for liability coverage only. Why pay for full coverage insurance if your cars value is worth less than the monthly or yearly premium you pay.
Cheap car insurance companies use blue book value to asses the worth of your vehicle. I learned this lesson the hard way. I total my car one year. I had full coverage insurance; so, I was under the impression that I would get the $25,000 Limit on my policy. Instead I got $10,000 for my troubles. To say the least I was disappointed. Check the value of your car online. This can save you money; that you would other wise lose. Paying to much for anything is not a good practice. Research is the key.
Some other items or thoughts to keep in mind are your geographic location. Some states have more accidents. Therefore rates may be hirer than that of a neighboring state with fewer traffic violations. The insurance industry is one of constant change. Loyalty, you can throw that out the window. Most insurance companies use the auto renewal method for there policies. This means that unless you notify your carrier; they will keep renewing your current policy when it is suppose to expire. So it’s a good idea to keep a constant check on competitor’s rates.