Understanding Car Insurance Rates

Whether you are a new driver, or you are an experienced driver considering changing your insurance company, it is important that you understand what goes into making the car insurance rates offered to you by the various auto insurers in the nation. While everyone must have some form of auto insurance, not everyone will receive the same rates. Some of the reasons for this are obvious, but some might be a bit surprising for some consumers. What goes into creating the rates that you will receive?
The Automobile Type – Most consumers understand that their choice in automobile will partially determine their car insurance rates. This is due to a number of different factors. For instance, a sports car is deemed more likely to be driven recklessly, while a station wagon is not. An SUV is deemed a safer vehicle than a subcompact car, while a sedan might be considered safer than a coupe in some instances. Your insurance rates will definitely be determined (at least partially) by the type of car you own.
Safety Features – One are that some consumers might not be aware of that affects the rates for car insurance is that of safety features. Cars and trucks are available with different levels of safety features from the manufacturer. In general, the more numerous the safety features, the lower your car insurance rates will be. For example, a base model might be offered with a minimum number of airbags. However, the next trim level up might offer a significantly higher number of airbags and thus receive lower insurance rates. Other safety features include traction control, anti-rollover technology, tire pressure monitoring systems and more.
Credit Report – Quite a few consumers are unaware that their credit history will play a role in the car insurance rates they are given. Better credit histories are granted lower insurance premiums, while poor credit reports usually receive significantly higher prices. This is because consumers with poor credit are generally deemed higher risk due to their perceived lack of financial responsibility. While this might be considered in poor tastes, it is a definite part of the process. You can protect yourself by improving your credit score before shopping around for new car insurance.
These are just a few of the areas that will play a role in the insurance rates you are given for that new car. However, they play an enormous role in the process and should be considered by anyone shopping for insurance.

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