Compare Auto Insurance Rates

Reader’s Question:

I got to compare auto insurance rates with my friends, and mine are more expensive. Why is this?

Sara

San Antonio, TX

Auto insurance providers employ different rating methods. They take into consideration different factors when computing for their policyholders’ auto insurance rates. A bad credit score may be seen with slight suspicion by insurers, and thus may result in higher rates. So, it would be good to fix the previous months’ financial statements first before applying for auto insurance. Women get lower rates, as well, as they are safer drivers, and thus get into fewer accidents than men. Teenagers who have just acquired their licenses may have to pay more expensive rates as they are relatively inexperienced in driving, and thus are more likely to get into road mishaps. Older drivers aged 55 years or above get to be charged with higher auto insurance rates, too, because they have been reported to file more expensive claims as they require more complex and longer hospital care after accidents. The model of the car is another significant factor that goes into the computation of premiums. Those equipped with more safety features like front and side airbags, automatic seatbelts, traction control, anti-lock brake system, etc. will be assessed with favorable rates as these types of vehicles are less likely to get into fatal accidents. One’s type of work will also be checked. Those with low-impact jobs like secretaries in a company will get to pay cheaper rates compared to those who hold strenuous jobs like factory workers.

So, you should review these factors when you study why you pay much higher auto insurance rates than your friends. If you feel that what you are paying is unreasonable, then go ahead and shop around for quotes, so that you get to compare auto insurance rates more effectively.