When it comes to auto insurance, your rate is based on a variety of factors. Choices you make in your life can affect how much you pay for auto insurance. If you want the cheapest car insurance, consider the following:
Your Driving Profile
How far you drive each day and each year, your accident and ticket history, and the location in which you drive most all affect your insurance rates. The less you drive the lower your insurance rate should be. If your driving record is free of violations, you should also pay a lower rate.
The vehicle you drive has a major effect on your insurance rate. Those who drive safe cars with lower risk pay less. If you really want the cheapest car insurance in California, choose a vehicle with a low likelihood of theft, with reasonable repair costs, and low risk of accident involvement. Statistics are kept on different makes and models of cars, and these statistics are used by insurance companies to set rates. If you want lower insurance and you are in the market for a new car, you can save a bundle choosing from vehicles that are ranked well by insurance companies.
Your Personal Information
How you live your life affects your insurance rate. Things like your age, your occupation, and your place of employment are all considered by insurance companies when setting your rate. Statistics are compiled based on these factors and the risk associated with them, which can lead to big savings. However, you can also be punished because of a circumstance that has nothing to do with your driving history. Compare rates and speak to the insurance company if you believe you are being unfairly asked to pay more.
Likewise, if you are required to drive while on the job, you will also be paying an increased insurance rate. Some people arrange with their employers to offset this rate with other benefits. Commuters who travel a long distance to and from their place of employment will also be paying more.
Your Credit Score
There is a trend in the auto insurance industry to base rates on a person’s credit score. If your credit history is shaky, prepare to pay a higher rate. Over time you can bring your premium down by improving your credit. Some states have introduced laws concerning the use of credits scores for determining insurance rates, but California currently has no bill proposals.