Affordable Auto Insurance: How to Qualify
For many people, their car is by far their most expensive possession, but they may not be aware of how to calculate exactly how expensive it will be. Aside from the purchase price, there's (usually) sales tax, registration fees, gas, insurance... owning a car is an expensive preposition!
While most people probably realize the need to shop around before purchasing auto insurance, what they may not realize is the many ways that your actions affect how much you have to pay. So what are some things that you can do to lower your rates?
Insurance companies are, obviously, more interested in insuring people who aren't going to cost them money, which mostly means safe drivers; clearly, getting into accidents will raise your rates! However, there are a number of other factors that contribute to your rate as well. Type of car is a big one; a model which is rarely stolen and has a high safety rating will cost less to insure, while more expensive cars will naturally cost more. Anti-theft devices such as Lojack or the Club tend to give small discounts as well.
Aside from the obvious, insurance companies look at other factors that they believe indicate how responsible you are. Have a lousy credit score? You're likely to see your rates rise under the assumption that carelessness with money translates into careless driving as well. Get good grades in school? Showing responsibility there suggests you'll be a good driver as well, leading to lower rates.
By law, everyone who drives has to have auto insurance, but how much you spend on it is largely up to you.
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