Driving Record- The most important factor in determining your rate is your driving record. You should strive to keep a clean record with no accidents, nor infractions. The greater the infraction, the more your rates will rise. For example, an accident or a drunk driving will affect your rate more than a speeding ticket.
Prior accidents will cause your rates to rise dramatically. If it is your fault, it will rise more than if you were not at fault.

Marital Status- Insurance companies have determined that married people are generally safer drivers than single people, and therefore pay less for car insurance.

Gender- Males generally pay more than females. The lowest risk group is middle-aged women. The highest risk group is young males.

Age- The cheapest time for insurance is middle age. The elderly and the young pay more.

Credit Score- Insurers feel higher credit is a sign of greater responsibility. They will run your credit and it is a factor in determining rates.

Prior Claims- If you have a history of making claims, you will be charged more. You do not have to file a claim on a minor incident, so you should consider whether it is worth it as it may cost you more in increased premiums than you are saving by making the claim.

Vehicle Type and Age- Sports cars and highly stolen vehicles are more expensive to insure than safer autos. The safer and cheaper your car, the cheaper your insurance will be.

How Much you Drive- The less you drive, the cheaper your insurance will be. The fewer miles driven per year, the less your insurance should cost due to the fewer chances for an accident.

Where you live- Different states and counties and cities have different auto insurance rates based on historical data. The cheapest state for car insurance is Vermont while the most expensive is Louisiana.

Some of these factors are in your control, some are not. Knowledge before you shop is important for saving money. Since many of these factors change often, such as credit or your driving record, experts recommend getting car insurance quotes at least every year from a minimum of 3 sources.

Sooner or later, you’re likely to allow another driver to operate your vehicle. It might occur when you’re driving a long distance with a friend and you share the driving duties. You might toss the keys to the teen-aged valet at the local night club. You could also lend your truck to a friend who’s moving across town or whose vehicle is in the shop. These are daily situations that usually are uneventful. However, if your friend has an accident while driving your car, you could be held legally responsible.

Laws and insurance policies vary when it comes to these situations. Coverage depends on the terms of your policy, the severity of the accident and the statutes of the state. Your insurance covers your vehicle under your control. If you allow another driver to operate it, you can and will be held responsible in most situations.

In some cases, your insurance will cover the costs of the accident if your friend is driving, but coverage will not exceed the limits of your policy. If damages are greater than your policy’s limits, your friend’s insurance will cover the rest. However, before you lend your vehicle to another driver, it’s best to check your policy to be certain you’ll be covered. Some policies will not cover a driver under the age of 18 unless you have them listed as a driver on your policy.

If your car is stolen by a stranger or “appropriated” by someone you know, you won’t be responsible for any damages caused by an accident. You’re not personally responsible for accidents caused by a driver who did not have your permission to drive your car. It’s important, therefore, to report a missing vehicle to the police immediately to prevent any further complications.

If a valet driver wrecks your car, the costs will be covered by the valet parking company. If you notice your car has been damaged when a valet brings it to you, you need to get the driver’s identification and insurance information. Then you need to contact the valet’s supervisor for their insurance information. Give this data to your insurance company. Usually the parking company’s insurance covers the damage to your car. Fortunately, your rates will probably not be affected if a valet crashes your car.

If your friend has an accident that injures another driver or causes severe damage to their vehicle, you’ll be held responsible. Your insurance company will usually pay the claim and then come to you for reimbursement. They’ll also likely raise your insurance rate. If the person to whom you lent the car was not at fault, you won’t be responsible and the at-fault driver’s insurance will pay for the damage and injuries.

Your insurance company could deny coverage if it’s determined that you allowed another driver to use your car when it was in a defective condition or when the operator was somehow impaired. If you allow a drunk driver to drive you home, you’re responsible if they have an accident. If your car has no brakes and you let another driver use it, you’re responsible if there’s an accident. Your insurance company will not pay to repair your vehicle or to cover the costs of your friend or the other driver, if there is one.

A good rule of thumb is to always assume you’ll be held responsible if another driver uses your car with your permission and causes an accident. If damages exceed your insurance coverage, you could be sued for medical fees and replacement costs for the other driver’s vehicle. Therefore, it’s best to never let another driver use your car unless you’re sure they’re sober and careful.

There’s a lot of confusion out there about how car insurance works when you are driving another person’s vehicle. It is smart to clear up that confusion before you get behind the wheel of a friend’s car. After all, the last thing that you need is to be involved in an accident and discover that you are out of luck. Fortunately, the odds of that happening are quite slim. Insurance companies generally have practical rules in place when it comes to their customers driving other people’s cars and vice-versa. Study up on this important topic by checking out the following information.

The Insurance Goes with the Car

Here’s the easiest way to think about this topic: The insurance generally goes with the car. In other words, the policy covers the vehicle above everything else. When you drive a friend’s car, his insurance policy will remain in effect. Of course, that is assuming that he has coverage. You shouldn’t just assume that. If you allow a friend to drive your car, your policy will be in effect. If this wasn’t the case, there would be a great deal of confusion for insurance companies to sort out and rates would skyrocket.

The Owner’s Policy Applies First

As noted above, the owner’s policy applies first when you are driving another person’s vehicle. If you end up getting into an accident while you are driving a friend’s car, his insurance policy will apply first. The initial claim will be made against his policy. If it turns out that your friend doesn’t have insurance, your own policy will come into play. That might also happen if his policy isn’t sufficient to cover all of the damages that occurred during the accident. If you have insurance and your friend does too, you have nothing to worry about.

Stipulations and Things to Keep in Mind

As reassuring as the preceding information may be, you shouldn’t jump behind the wheel of your friend’s car just yet. The following points need to be taken into consideration. If you run afoul of any of them, you could violate the terms of one or both policies and end up in trouble.
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<li><u>You Must Have Permission</u> – This one should go without saying. If you don’t have permission to drive another person’s vehicle, you are technically stealing it. Make sure that you have the express permission of the actual owner of the vehicle. If your friend’s parents actually own the car, for example, you will need to get their permission.</li>
<li><u>You Must be Listed if You Live in the Same Household</u> – If you have a roommate and drive his car, he needs to list you on his policy. It doesn’t matter if you only use his vehicle on an infrequent basis. If you live in the same household, you must be listed on his policy in order to be covered.</li>
<li><u>You Must be Listed if You Regularly Drive Your Friend’s Car</u> – Just because you don’t live in the same household as somebody doesn’t mean that you don’t have to be listed on their car insurance policy. If a friend lets you use his car regularly, he has to list you on his policy. It’s the simplest, most straightforward way to ensure that you are protected.</li>
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You are Covered

As you can see, you shouldn’t have anything to worry about when driving another person’s car. From an insurance standpoint, you should be covered. Just make sure that the preceding stipulations are all being met. Always double-check to make sure that your friend has insurance in the first place too. These small but important steps will save you a lot of hassle.

In all of the excitement of buying a new vehicle, it is easy to overlook one thing: car insurance. People often don’t give a thought to insuring their new vehicle until after all of the paperwork has been signed. Before you drive that shiny new car off the lot, though, you need to make sure that you are adequately protected. Laws differ from state to state. The terms of your existing insurance policy will largely determine whether or not you are covered. They will also determine the extent of any coverage that you enjoy. Delve more deeply into this topic below.

Replacing Your Primary Vehicle

Most of the time, people buy new vehicles to replace their old ones. In fact, you might even trade in your old car in order to apply its value to the price of your new one. If you are simply replacing your old vehicle, your existing insurance policy should protect your new one through the end of its term. After all, you are paying the insurance company to insure one vehicle. You do not necessarily have to notify your insurance company right away. If you are unable to do so, your existing policy will keep you safe while you are driving your new car.

Buying an Additional Vehicle

If the new car that you are buying is going to increase the total number of cars that you own, different rules come into play. Whether you are buying the new car for a spouse, child or other relative, or if you are going to use it as a backup, your existing policy will not cover it through the end of the term of coverage. That is because your existing policy only insures one vehicle. Adding a new vehicle into the mix means that your premium is definitely going to go up.

Grace Periods

Although your existing policy won’t cover an additional car through the end of its term, a grace period may apply. This is a gray area, however; laws vary from state to state. In many cases, your new car will be covered by your insurance company for 14 days. At that point, you will have to notify them in order to continue that coverage. While you can dig around to find out the laws of your particular state, it is easier and safer to simply ask your insurance company how the process works.

Liability-Only Coverage versus Comprehensive Coverage

The extent of the coverage that is granted to a new car depends on the terms of your existing policy. If you had an older car with a liability-only policy, the same terms will apply to your new vehicle. In other words, your insurance policy will only cover damages to other vehicles and injuries to other drivers. If you had comprehensive coverage, however, it will carry over to your new car. If you didn’t have physical damage coverage, though, your new vehicle most likely won’t be protected. In some states, physical damage coverage kicks in for up to four days.

Always Check First

You should always give your insurance company a call when you are buying a new car. In fact, you might even want to call them if you are simply thinking about buying a new one. They will be able to tell you, in no uncertain terms, whether or not that new vehicle will be covered right away. In many cases, they can handle the paperwork while they are on the phone with you. By the time you leave the dealership, all of your ducks will be in a row. For all intents and purposes, this is the smartest way to go.

Of the many factors that contribute to car insurance rates, one of the most important directly involves a driver’s credit score. This is the numerical score given to a person with any type of documented personal financial history, and includes everything from credit cards and bounced checks to loans received and bills paid. The majority of insurance companies today run the credit of potential policy holders, taking into account that score and all that it implies in the realm of car insurance. While keeping your credit history clean and maintaining a high score has always been important for a number of reasons, it has definitely become even more important now that it is known to affect car insurance premiums.

Experts state that, while a person with low credit may not necessarily be a more reckless driver behind the wheel, that person is more likely to take more risks in general. People who consistently take more risks concerning daily life in general tend to become involved in a higher number of accidents. Because of this, research has show that someone who consistently fails to pay bills on time or leaves bad checks unpaid is statistically more likely to receive a higher insurance quote from an insurance company. The Insurance Information Institute reports that this is due to the fact that individuals with lower credit scores actually file up to 40% more expensive claims with their insurance providers than their higher scoring counterparts.

Why is an individual with a lower credit rating more likely to file more claims with an insurance company? It has been seen that people with higher debt are more likely to attempt to take advantage of insurance in the event of a minor accident or ticket than individuals with better credit. It is important to make a crucial distinction here concerning insurance companies and credit-based insurance rates. Insurance providers do not necessarily believe that someone with a poor credit score is more likely to have his or her stereo stolen. Nor do they offer any empirical evidence that a man who fails to pay his credit card bill in full or on time will most definitely be involved in a substantially higher number of fender benders per year than someone without unpaid balances. However, their research has shown that there lies an undeniable correlation between poor credit scores and the propensity to file a higher-than-average number of claims on an annual basis.

This method of determining coverage eligibility and rate is not seen as fair by the everyone. Many people who have undergone a significant financial crisis (such as identity theft or divorce) may suffer in the area of credit, despite having dedicated their lives to secure financial responsibility. These cases can often be explained to an insurance provider and, with enough acceptable proof provided, be dismissed as an indication of a driver’s risk and liability.

While the news of credit-based rates may be disheartening to those with less-than-ideal credit scores, hope for low car insurance rates is not entirely lost. There are a number of ways to improve credit, thereby improving your chances of receiving lower rates on car insurance. If small, unpaid balances are the culprits behind your low credit score, working on paying them off gradually can actually look good to insurance companies considering you as a policy holder. Many businesses accept payment plans as an indication of good faith and an attempt to restore credibility. When an insurance company sees that you have taken responsibility for your credit rating, you are more likely to be offered a lower rate for your monthly car insurance premium.

Many factors affect your auto insurance rate. One of the most important and frequently considered of these aspects is your vehicle’s overall safety rating. When an insurance provider offers you a quote on auto insurance, the safety and performance of your vehicle will be one of the top factors taken into account when it comes to determining premium amount.

Nearly all vehicles are given a safety rating by the National Highway Transportation Safety Administration, or NHTSA. This organization tests vehicles before they are sold to the public. This rating is expressed with a star system, with five stars being the highest. Highly trained experts in the field of vehicle safety ensure that a vehicle passes a rigorous system of tests before it is given the highly coveted 5-star safety rating. These tests include crash tests (both front and rear collision), stop tests to check the efficiency of braking systems, and a number of mirror tests to ensure that drivers are able to see obstacles and other drivers clearly and easily. When an insurance company sees that your car is labeled with a high safety rating, your premium reflects the inherent projected safety of you (the driver) and your passengers, as well as that of other drivers with which you may come into contact on the road.

One of the reasons that car safety rating is so important to insurance companies is that a safer driver is a less expensive liability. When an insurance provider looks at your vehicle’s specifications, there are a few integral items they will seek out specifically. These include anti-lock brakes, airbags, and automatic seat belts. Newer and more sophisticated safety systems will often garner an even more substantial discount. These include side curtain airbags, anti-skid systems, and cameras or mirrors that further help a driver in preventing collisions with objects or other vehicles. Checking with various insurance companies to see if these features help in reducing premiums can be incredibly beneficial when selecting a company and coverage.

Another factor that comes into play regarding vehicle safety rating is durability. When a car is given a high safety rating, the NHTSA is also giving it a stamp of approval in the area of longevity and durability. A car must be able to stand up to tests of time and the elements. If a car endures wear and tear well but loses any of its integrity regarding safety, then it cannot be properly deemed a safe vehicle. Insurance companies are more likely to offer a lower rate to the owner of a vehicle whose track record is clear of excessive breakdowns because this is an indication of durability. A car made of quality parts is far less likely to malfunction unexpectedly during driving, and is therefore far less likely to be involved in or cause an accident.

Changes in car safety standards also stand to make a difference in the amount you pay monthly for car insurance. When the NHTSA makes significant alterations to their policies and standards, some car owners may find that their pocketbooks suffer. It is important to remember this when considering and selecting a car insurance provider, as each company is different and reserves the right to increase rates based on evolving safety standards. While it is inevitable that car insurance premiums will continue to fluctuate, the fact that these rates are affected by safety rating will not change over time. In order to acquire the best rates possible, simply maintain your vehicle’s durability and integrity, selecting highly rated cars when you upgrade. This will ensure low rates as well as consistently safe driving.

Considering the abundance of available car insurance companies in existence today, it is understandable that choosing one in particular may prove difficult. This is especially true concerning rates, coverage, and deductibles. The only way to ascertain that your coverage is being provided to you at the lowest rate possible is to research the ratings and policies of various providers. Fortunately, official insurance company ratings are available to the public for the purpose of making these essential comparisons.

Before you begin to compare rates, it is highly beneficial to consider the type and level of coverage needed for your car and your individual situation. An uninformed driver may find himself quickly roped into paying up to $500 more per year for car insurance than is necessary if the plan he ultimately chooses is not the right fit for his lifestyle or his vehicle. For example, if your car is relatively new and you still owe money on it, you will need more than the limited coverage liability required by state law. Comprehensive coverage will cost more, but keeping your car protected and adequately covered is of key importance during the period in which it is still being paid for. However, if your car is older and you desire only the lowest level of coverage available, you can shop various providers and brands for liability insurance only, comparing and contrasting rates for the same amount of coverage.

When it comes to brands of car insurance, there are a seemingly unlimited number of options available. While your area may prove to offer smaller, more local firms with low rates, the following list includes nationally available providers that offer low rates to help you save money on your car insurance. These brands have been researched and rated by A.M. Best and reported by the highly acclaimed Insurance Journal, which provides up-to-date information and quality ratings for the most widely used insurance agencies in the country.

* Geico – Known for their humorous spokesperson (a gecko) and their promise to save drivers up to 15% in 15 minutes or less, Geico is rated by A.M. Best as one of the top five insurance providers for automobile drivers across the nation. As reported by Insurance Journal, the firm has been granted an A++ rating in financial strength and operating performance, as well as for .

* Esurance – Esurance states that they can offer drivers lower rates than competitors due to their ability to customize a plan for each individual. Insurance experts state that the rating for this firm can only continue to improve, especially since its recent purchase by Allstate.

* Progressive – Progressive has received an A++ rating nationwide from A.M. Best’s Consumer Insurance Center as well as with accredited Standard & Poor’s insurance scoring. Progressive’s claim to insurance rate fame revolves around their ability and willingness to provide their potential customers with the rates of other car insurance providers alongside the rates they offer for the same coverage. This allows drivers to compare easily and quickly before making a final decision.

* 21st Century – This provider proudly boasts that their low rates help to save their drivers up to $400 per year while still offering the highest quality and level of coverage available. Standard & Poor have provided the firm with an A rating in both financial strength and issuer credit. Once again, the only way to ensure that your coverage is priced at the lowest rates possible, it is absolutely necessary to obtain official quotes and to carefully compare them before making your selection.

At some point during the life of their car insurance policy, most drivers find themselves searching for ways to lower their premiums to save money. The best way to lower auto insurance rates is to stay abreast of the latest discounts offered by top car insurance providers, remembering to shop around often and compare rates before committing to a particular provider.

One factor that greatly affects auto insurance rates is the type of car covered by the policy. Many of a vehicle’s characteristics serve to affect the amount paid for insurance. These include the car’s price as set by the dealership, the cost of parts and repairs for the car, the probability that the car will be vandalized or stolen, and the safety record of the vehicle as reported by authorities in the field. Researching these factors can help immensely if insurance premiums are a consideration in vehicle selection and purchase.

Another way that many drivers save money on car insurance premiums is consolidation. Combining car insurance with other forms of coverage (such as home or life insurance) can often lead to a decreased monthly payment. Many policy holders also choose to add the other drivers in their home to their plan in order to save money. Providers offer discounts in order to attract more customers, making bundling drivers onto one policy a smart and convenient way to cut monthly premiums.

Another factor that certainly affects drivers’ insurance rates is driving history. When a driver keeps his or her record clean, insurance companies see this as an indication of responsibility and dedication to driving carefully in the future. Accidents (even fender benders), speeding tickets, and other infractions can mean that an insurance company is forced to pay out more over time to cover a particular driver. This is the main reason that so many providers offer additional discounts and incentives for the completion of driving safety and defensive driving courses.

In addition to driving record, the amount of driving actually done in a vehicle can greatly impact auto insurance rates. Many companies offer discounts to drivers who use their vehicles less often than the average car owner, providing lower rates for less frequently used automobiles. This is generally due to the fact that a car that is driven less often will require expensive repairs less often, is less likely to be involved in an accident, and impacts the environment to a lesser degree. In a world that is increasingly aware of environmental health and safety, this factor often proves to be an important one.

Deductible price also plays a major role in the rate a driver can expect to pay for insurance. The general rule states that the higher a deductible is, the lower the monthly payment can be. While many drivers initially shy away from any amount that seems too high (even concerning deductible), increasing this amount on a policy may actually prove to save considerable amounts of money in monthly premium rates.

While it is common knowledge that different car insurance companies provide varying rates for similar coverage, many drivers are not aware of how much money they stand to save by shopping around and comparing rates before choosing a policy. Experts recommend that all drivers acquire and compare at least three car insurance quotes before settling on any one provider, and that they frequently reassess their situation in order to continue paying the lowest amount possible for the insurance they need.

Car insurance companies take many factors into consideration when determining coverage rates. Your driving record is one of the most important factors, but plenty of others come into play too. Your age, past claims history and type of vehicle also matter. While your race should not be used to determine your insurance rates, unscrupulous car insurance companies may take it into account in a roundabout way. Using a driver’s race to determine their insurance rates is discriminatory and illegal, but that doesn’t mean that it never happens anymore. The best way to protect yourself against this type of thing is by shopping around for car insurance.

Race isn’t a Direct Factor

There’s not a car insurance company out there that will willingly admit to using racial profiling to determine its premiums. When you fill out a quote online, you are not going to be asked to disclose your race. If you speak to an insurance agent over the phone, she is not going to ask you about your racial background. For this reason, it may seem that race can’t possibly ever be a factor that is used. Not that long ago, though, race was blatantly used as a factor in many cases.

Redlining

Just a few short decades ago, a practice called redlining was commonly used by insurance companies. The practice gets its name due to the fact that unscrupulous insurance agents would mark red lines around areas on the map where the population was predominately made up of minorities. In many cases, insurance companies refused to extend coverage to people who lived in those particular areas. Luckily, that practice has gone out the window. No respectable insurance agency is going to partake in such a practice in this day and age. That doesn’t mean that unfair factors aren’t occasionally used.

Credit Scores

When you request a car insurance quote, you often give an insurance company permission to run your credit report at the same time. A few decades ago, Fair Isaac & Company, which is otherwise known as FICO, sold auto insurance companies on the idea that a low credit score often means a higher insurance risk. These days, insurance companies often take your credit score into account, at least to some degree. This relates to race because minorities in the United States are far more likely to have low credit scores. As a result, they are more likely to pay high car insurance premiums.

It is Important to Shop Around

Fortunately, credit scores are not used by every single car insurance company. If you request a quote and are given an exorbitantly high number, you have every right to move along to a different insurance company. While one company may take your geographic location and credit score into account, the next one might completely disregard those factors. You are far more likely to pay more than you should for car insurance when you fail to shop around for it. The Internet makes it easy to do, so there is no reason not to do so.

Be a Savvy Insurance Shopper

It doesn’t matter what race you are; if you want low rates for car insurance, you can increase your odds of getting them by shopping around. There is nothing wrong with directly asking a prospective insurance company whether they take credit scores into account. If a company is upfront about doing so, you will at least know where you stand. As far as race goes, you should never be asked about yours when you are requesting quotes. If an insurance company makes you uncomfortable, simply move on to the next one.

If you are looking for ways to enjoy cheaper car insurance rates, here’s one prime tip: get married. Indeed, studies suggest that married couples tend to enjoy lower car insurance premiums than their unwed counterparts. Of course, saving a little money on auto insurance is probably not reason enough to tie the knot. If you are going to get married anyway, though, you can expect to see your rates drop at least a little. There are many reasons that married folks tend to pay less for their car insurance policies. You can learn about a few of the most important ones below.

Stability Counts

Whether it is true or not, married people are believed to be more stable than single people. In many cases, they have two incomes with which to pay their bills. Insurance companies like to snap up as many married couples as possible because it increases their odds of receiving regular on-time payments. Therefore, insurance agencies are more willing to extend low premiums to people who are married. It is their attempt to attract as many stable, married people as they can. Even if one spouse loses their job, there should be another income; the odds of having trouble with collecting payments will be low.

Bundling Policies

Married people are more likely to need other types of insurance products. Insurance companies that offer full arrays of insurance products often offer discounts to those who buy more than one of them. For example, a married couple may decide to buy their life insurance and their car insurance from the same agency. One way to seal the deal is by offering a discount for doing so. Single people are less likely to be interested in such products. Whether it is fair or not, this is generally how things go.

Built-In Customers

Another reason that married couples are often offered very low rates is because they could very well bring new customers into the fold. If the couple is satisfied with the insurance that they receive, their children may be added as drivers at a later date. They are also more likely to pass along recommendations for their insurance company to their married friends. These small points can add up to a whole lot of business for an insurance company, so it pays to try to get on a married couple’s good side by offering very low rates.

Age Counts

Coincidence also plays a role in the phenomenon of married people enjoying cheaper auto insurance rates. For one thing, people tend to get married in the mid- to late-twenties. By that time, they have a decent amount of driving experience under their belts. Whether they were married or not, that experience would qualify them for lower rates. New drivers typically have to put up with high insurance rates until they can show insurers that they aren’t too likely to file claims. Men who are between the ages of 18 and 21 are considered to be the riskiest to insure; when they get married, their rates often drop.

Should You Get Married to Save Money on Car Insurance?

While you are likely to see at least a small drop in your insurance premiums after you tie the knot, it isn’t going to be earth-shattering in scope. Just consider it a perk of getting married, but don’t rush into marriage just to save a little money. It’s much better to simply be a safe and conscientious driver. By maintaining a clean driving record and avoiding accidents, you are much more likely to enjoy rock-bottom insurance rates. If you happen to get married too, you’ll save even more.