Cheap Car Insurance Exists, And Here's How You Can Get It

by Crystal Powers

You have to be cautious when someone tells you that he has very cheap car insurance. Think about it, what kind of insurance profile would that person have that would give them the benefit of such a cheap car insurance? People will often complain about their car insurance rates to a friend or neighbor and too often that neighbor or friend will claim that their insurance is much cheaper. That may be true for a number of reasons. For one thing, we don't have the same cars. We don't have the same driving records. Drivers aren't all the same age. There are a whole lot of variables in the criteria that make up the car insurance rate.

The Criteria

Your Credit Report. Insurance companies usually use the credit report as part of the equation when setting the rates. Some folks can't understand that. Actuaries have come up with the statistics that prove credit to be a significant rating factor. Credit history is closely related to an individual's accident frequency.

Vehicle Types. This can be kind of tricky. There are some newer vehicles that have better rates than the older ones because they have better safety features. There are some cars that are more likely to be stolen. You must get your vehicle identification number when you buy a new vehicle and give it to your insurance company so you can get your new rate.

The Rating Territory. You are stuck with this one unless you move to another geographical area.

Driver Info. Know that the driver's age and his records can affect the rate of the vehicle insurance.

Discounts. There can be several ways to get a discount. One way is by buying a home insurance plus auto insurance. Good student and drivers training discounts are available to young drivers with some companies. You can also find retirement discounts and discounts for taking mature driving courses.

It's really your choice to have a lower rate. Do your home work and ask your insurance company a lot of questions.

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