All car insurance companies claim that they will save you a decent amount of money on your car insurance. The fact is that they (yes, all of them) may be telling the truth! Each car insurance company has its own way of assessing how much a person needs to pay for their car insurance. Each of these methods is different, and that’s why the car insurance quotes they come up with are different. That’s why it’s important to compare car insurance quotes.
Factors That Affect Insurance Rates
Different car insurance companies use various factors to settle on a final quote. Some of the common factors that all companies take into consideration are:
- State you live in
- Driving history
- Coverage amount
- Credit score
- Gender
- Age
To make sure you save the most on your car insurance policy, what experts recommend is to compare car insurance quotes received from at least 4 or 5 companies. When you compare car insurance quotes, it will become evident which policies are best suited for your coverage requirements and personal budget. Comparing car insurance quotes also helps you evaluate each company’s benefits and drawbacks and choose the right company/policy that meets all your needs.
Way.com analyzes car insurance rates for drivers with various driving and credit histories across zip codes from every major car insurance company to help you easily compare car insurance quotes and snag the lowest prices.
Compare Car Insurance Quotes by Age
Most insurance providers charge drivers around the age of 25 higher car insurance rates because they tend to get into more accidents on average than older drivers. Car insurance rates for a 25-year-old driver also vary from state to state.
Drivers in their 40s or thereabouts are in an ideal range for car insurance. This age group appears to get into fewer accidents than other age groups. So they typically get the lowest rates. Rates vary across companies and states.
Compare Car Insurance Quotes for Drivers Who Have a DUI
If you get charged with a DUI, i.e., driving under the influence, your car insurance rate can increase up to 75% or more. So, if, for any reason, you end up with a DUI, you will do well to compare car insurance quotes thoroughly before settling on the best price.
Compare Car Insurance Quotes for Drivers with Poor Credit
Your credit history is one of the significant factors that can affect the car insurance quote in all states, except California, Hawaii, and Massachusetts. Even though poor credit can cause rates to double in some instances, each insurance provider considers credit quite differently. Also, the importance of a credit score or credit history varies by state. Certain states completely ban the use of credit in setting car insurance rates.
Compare Car Insurance Quotes for Drivers Having a Ticket
If you get a speeding ticket, it can result in high car insurance rates, which will go up by around 20 to 30%. Again, the increase in your rate depends on the state you live in and your insurance provider. For example, the increase in car insurance rates is higher in California than in Texas.
Compare Car Insurance Quotes by Make and Model
Did you know that your car’s make, model, and even trim can affect your insurance rates? A car’s make means the vehicle brand, while the model refers to the specific version of the vehicle. For instance, if you own a Ford Explorer, Ford is the make, and Explorer is the model. However, this is still a pretty broad classification. For insurance purposes, you’ll need to know the age of the vehicle and the version/trim style that you own. Insurance companies classify three trim types – Standard, Sport, and Luxury. However, this is not the only aspect that can affect insurance rates. Your car’s body style also has an impact on cost. The three body styles that insurance companies classify include Coupe, Sedan, and Hatchback.
If you’re wondering why car insurance costs differ by make and model, here’s why. Car insurance premiums are calculated based not just on the risk offered by the driver and the vehicle, but also on the cost of replacing/repairing the vehicle. If the cost of fixing your car veers to the higher side, you will have to pay more for coverage.
The best technique to get accurate car insurance quotes is to use the Vehicle Identification Number, more commonly called the VIN. Your car’s VIN is a unique 17-digit code specific only to your vehicle. Your vehicle’s VIN provides insurers with all the information that they need about your car’s history. You’ll find the VIN on the driver’s side dashboard, where it meets the windshield. If you don’t see it there, check your vehicle’s title; it will usually be in there.
Why Should I Compare Car Insurance Quotes Online?
No two drivers are the same. Nor are their car insurance needs. Insurance companies factor in each individual’s risk factors to arrive at the most accurate cost for their policies. That’s why insurance costs are as unique as you are, and that’s why comparing various car insurance quotes is one of the most critical steps in buying your car insurance policy.
Personal details such as where you live, the car you drive, your driving history, and your credit score are factored differently by car insurance providers to compute your car insurance rates. Each company has its own method/algorithm for setting rates. That’s how the same driver ends up with vastly different insurance quotes for the same vehicle from different companies.
You can have dozens of car insurance coverage choices and cost options in front of you, and still be confused about how to proceed. That’s why Way.com offers an easy way to compare insurance quotes offered by various insurance providers. We offer simple and free car insurance quote comparisons for all kinds of drivers around the world. We’ll give you free, reliable quotes and discounts from top-rated insurance firms in minutes! All that you need to do is compare these car insurance quotes and choose the one that is just right for you.
Renée Martin is a travel and car expert who focuses on road and air travel in the U.S. For the past 6 years, she’s been helping make driving and trip planning easier and budget-friendly for everyday travelers.
