Today, everyone is looking for a good deal, and nowhere is this truer than with auto insurance. Car insurance policies vary widely in cost, and it can be difficult to figure out what’s a fair price and what’s not. Unfortunately, there isn’t a one-size-fits-all rule for knowing what’s a good deal…and what’s not! Instead, you need to know what to look out for with an auto insurance quote and develop an understanding of all the various things that affect a quote at any given time.
6 Things That Influence Your Auto Insurance Quote
When it comes time to compare quotes, consider these six things and how they’ll impact the numbers you get from different providers:
1. The Cost of Your Vehicle
Today, the cost of your vehicle has a significant impact on the amount of your quote. While shorter loans used to be the norm among people purchasing cars, today’s loans typically stretch 86 months or longer, creating negative equity situations in which it’s impossible for car owners to use the equity in their vehicle to put toward something new.
Because of this, insurance companies have begun looking at the cost of your vehicle, and the size of the loan you have out on it, to determine your quote amount. In addition to looking at the purchase price of your car, they may also consider the cost of operating your vehicle on an annual basis. To check this for yourself, you can access CAA’s Driving Cost Calculator.
2. Past Claims
Previous claims can make or break the amount of your quote. If you have a handful or more of prior insurance claims, your quote is likely to be higher than someone with few or no claims. What’s more, the type of claims you have will have an impact on how much you pay for insurance – with accidents and moving violations jacking up your rates.
3. The Mandatory Car Insurance Requirements in Your Province
Compulsory car insurance requirements in your province will determine what your quote looks like. In some provinces, it’s possible to purchase bundles through private insurance companies, while in others, you might have to buy basic coverage through a government system. There are many differences in insurance from province to province and understanding each will go a long way toward helping you recognize a fair quote when you see it.
4. Additional Benefits
If you want to add other benefits to your policy, you can expect a higher quote. While Provincial requirements dictate standard liability insurance, people may also want to purchase increased personal liability insurance or other additional coverage, which will increase the price of the quote.
5. Your Age
As a general rule, younger drivers pay more for car insurance because their driving record isn’t as established as older, more experienced drivers. While some deem it unfair, your age will influence the amount of your quote, and you can expect to secure better deals as you rack up the birthdays.
6. Your Driving History
Your driving history will cause your quotes to go up and down according to past claims, previous tickets, damage done to vehicles, and injuries caused. If you have a clean driving record, you can expect a cheap quote, while those with a spotty driving history can expect to pay more.
How to Recognize a Fair Auto Insurance Quote
The best way to recognize a fair auto insurance quote today is to get several, and pay attention to the ones that take the above-mentioned factors into account most reliably. If you feel that your quote is unreasonably high, it’s worth speaking to the insurance provider who issued it to determine what influenced the number – and if there is anything that can be done to lower the number. Sometimes, but not always, insurance quotes can be reduced by bundling the insurance with your other needed insurance policies, such as your homeowner’s or motorcycle insurance.
If you are very young or have a poor driving record, you should assume that your quote will be a bit higher than you’d like. While this is unfortunate, insurance companies have to protect themselves, as well. If you want to lower your policy costs, look for a company that offers safe driving discounts and perks. Over time, this can help you save money on your monthly premiums and get more from your policy as a whole.