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Why Aren't Car Insurance Rates Standard?

Since a wide array of factors affects the premium on your auto insurance, there can really be no standard car insurance rates

By: Tom Lustina
Category: Automotive
: Insurance:Auto
Posted: Aug 13, 2009
Updated: Aug 13, 2009
Views: 156


Since a wide array of factors affects the premium on your auto insurance, there can really be no standard car insurance rates. Many drivers assume that they are paying a higher premium than most, but that is not necessarily the case. Instead of worrying about others, however, go online and compare auto insurance quotes to find the most affordable auto insurance policy for yourself.

Here are some factors that help determine your auto insurance quotes:

1. The state you reside in. Since each state determines how much minimum insurance each driver on the road must have and how much an insurance company is allowed to charge for that coverage, standard car insurance rates do not apply.

2. Your driving record. If you have unpaid parking tickets and a couple of accidents under your belt, chances are you will be paying a high premium. Your insurance company typically contacts your state’s DMV every 6-12 months to see how you’re doing, so make sure you keep that driving record pristine.

3. What car you’re driving. Your rates depend greatly on the type of car you have sitting in your garage. If you own a flashy and luxurious car, be prepared to spend some money on your premium. On the other hand, modest cars that perform well in safety tests will bring in more affordable rates.

4. What coverage you choose. Although every driver in the country must have a minimum amount of liability coverage in order to be able to drive, many drivers opt for more extensive coverage such as comprehensive, collision, and uninsured or underinsured motorist coverage.

5. Your insurance score. Most insurance companies calculate a score that includes your credit, claims, and payment history. By scoring well, you will receive affordable rates, but if you perform poorly, you’ll get stuck with high rates. Either way, they won’t be standard car insurance rates.

There are also discounts drivers should be on the lookout for. Even though many drivers are eligible for discounts, they don’t take advantage of them because they don’t know they exist. Talk to your auto insurance agent and ask about any discounts the insurance company might be offering.

Debunking the Myth of Standard Car Insurance Rates

Do standard car insurance rates exist? Does it even matter? With how many different factors go into determining rates, it’s difficult to establish a true definition of standard car insurance rates. Instead of worrying what other drivers are paying for their insurance, focus on yourself. Go to InsuranceAgents.com and compare insurance quotes or contact a local auto insurance agent today to find out what constitutes as standard car insurance rates for you!

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