Online Car Insurance Rate

If you’re purchasing car insurance online, then the first question on your mind will definitely be “how much is this going to cost me?” But to find out how much you’ll end up paying for car insurance, you’ll first have to find out about the various factors that can influence your monthly rates. Because car insurance companies give the most favorable rates to those who are deemed a “low risk”, it pays to find out what factors can cause your monthly rates to rise and what you can do to guarantee the lowest online car insurance rate possible.

Car insurance companies calculate the “risk” that their customers’ represent, relying on third-party companies that specialize in collecting data from accidents and other traffic incidents. In this case, “risk” represents the potential for a driver to be involved in an accident and therefore, have to file a claim with the insurance company. Drivers who may potentially be involved in frequent accidents represent a greater risk to insurance companies than those who generally avoid accidents. Aggressive and inattentive drivers also represent a greater risk, as do those with multiple traffic violations.

Your age, the type of vehicles you drive, where you live, how far you commute, your marital status and the number of traffic violations you have received can effect how much you’ll end up paying per month. A driver’s age is one of the biggest factors that determine how your monthly rates are set. Drivers between the ages of 25 and 55 represent the lowest risks to insurance companies, largely to this age bracket showing greater maturity and responsibility than those younger than age 25. Younger drivers are prone to driving more aggressively and getting involved in more accidents than older drivers. On the other hand, drivers over the age of 55 may end up paying higher rates, due to issues that affect the elderly, including deteriorating eyesight, fading mental acuity and slower reflexes.

Your marital status can also affect your online rates. Married drivers end up paying less than single drivers, due to lower risk factors. Those who have a shorter commute to work will also end up paying less for car insurance than those with a much longer commute. Even your zip code can affect how much you pay. Certain areas with a higher crime rate will also give you higher insurance rates online. There are many resources available online that can tell you which areas in your city represent the highest risk.

In the end, the best way to get a low online car insurance rate is to comparison shop. With access to the Internet, this is a pretty easy and time-saving task, especially with websites available that can pull instant quotes from 4 or more insurance companies for review. Don’t forget that online car insurance rates can be cheaper than those quoted by a live agent, and it’s also quicker to pull a quote online than it is to get one over the telephone or even email.