Auto Insurance - Which One?

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Auto insurance is often a sticky subject. Everyone feels like they are paying too much to insure their car, and want to know how to get their premiums down. It is an industry that really does not have an effective way to make price comparisons, leading many people to switch every few years as they do with credit cards or phone service providers.
Auto Insurance - which one?

When you understand the factors that go into determining the price you pay for car insurance, however, you should find it easier to read the market and use it to your advantage. This article should provide a basic foundation, but entire books have been written on the subject-it's up to you how much you want to learn.

The most basic thing that you need to understand is that insurance companies do not decide premiums based on how much they like you, or how much they think you can afford. Insurance is based on one thing and one thing only: the risk. Every time an insurance company has to pay for the accident, they keep a record number, and any other factors they can find-make, age and model of car, age and gender of the driver, where they live, how long they have to have a license, etc. , There are hundreds of factors.

From this, the insurance company can build so-called 'risk profile'. This allows them to work out the risk that they will have to pay for any given person, and how much they will tend to have to pay, based on past experience. This is why the new qualified male driver in his twenties driving a sporty car had to pay so much to get insured-statistics show that this group is by far the most likely to have an accident.

Once you understand this system, you can use it to your advantage. Obviously you cannot change who you are, but you can change your car. Make, model and age of the car you are three very important factor in your risk profile, and they are all open for you to change. It is not difficult to use the tools of online insurance quote to find out where the car is expensive in terms of insurance, which is cheaper, and use this to help you make the decision to buy.