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Really Cheap Car Insurance - You Want It Cheap? Start Here

by Greg Haehl

Is there such a thing as really cheap car insurance? I don't know how that happens unless you have a really cheap car that you hardly ever drive and nobody in your geographical area has had an accident in the last 20 years. That would drive the rates down significantly. The reality of that all occurring is somewhere between very slim and none. Car insurance is given its rates by insurance actuaries. They review claims experience in certain geographical areas along with driver age groups to obtain some of their criteria for determining rates. The kind of vehicle that you purchase has a lot to do with rates. Some vehicles have a very high theft rate.

Cars at up to 90% off the book value!

It's just not that simple to come up with a low rate with all of these unknown factors. The logical approach to finding low cost insurance is to gather insurance quotes from several companies and from that you may be able to find the lowest comparative rate.

Rating Factors

1. Geographical Area - You have no control over the driving experience in your own back yard. That still doesn't negate the fact that your neighbors can affect your rates. The higher frequency of accidents in your area will increase the rates. The severity of accidents will also affect your rate. You will often find higher frequency fender bender accidents in

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the inner city while the rural areas may have more severe accidents because of higher speeds traveled on the open highways.

2. Vehicle Types - Older vehicles with physical damage are obviously cheaper. Sports cars and expensive sport utility vehicles will increase the rate.

3. Young Driver Discounts - Some companies have discounts for good students with a 3.0 grade point average along with a drivers training discount. When you put the two together it can be significant.

4. Retired Discounts and Mature Driver - Some companies have retirement discounts and mature driver discounts to lower the rates for senior

citizens.

These are just some of the many possibilities. Ask about available discounts when shopping for car insurance. Consider the area in which you live and adjust with the types of vehicles you purchase and how you arrange your coverage. Educate yourself more than you have before and you will help your cause.

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