Cheap Car Auto Insurance Quotes

Car insurance premium pricing can be a confusing subject for many of us. It seems unfair, for instance, when you go shopping for car insurance with a friend, only for what they are charged as car insurance to turn out to be as low as a half of what you are charged for the same product, and from the same provider. The truth of the matter though - and this is something you should expect almost universally - is that car insurance premiums charged vary considerably from person to person, even within the same car insurance company.

If you answer ‘yes’ to any of those questions, then you are not alone. As it turns out, the question as to what constitutes ‘fair car insurance premiums’ is a highly contentious one, with many other people (perhaps even those whom you consider lucky in terms of what they pay for car insurance) still feeling that they are paying too much for the product. The formulas that car insurance providers use in working out prices for their products depend on a number of factors, chief among which is the ‘risk profile’ of the policyholders, since insurance is all about risk and risk management. Higher risk profile individuals are therefore charged more for insurance than lower risk profile individuals, all the other factors held constant.

In trying to establish the risk of someone suffering a particular event they are taking insurance against, car insurance providers use ‘profiling’ techniques, so that people who meet the ‘high risk profile’ criteria find themselves being charged higher car insurance premiums than the people who meet the ‘low risk profile’ criteria. Several factors are taken into consideration in this ‘profiling.’

One of the factors used in car insurance profiling is the road-usage record of the person buying car insurance. People who have previous been involved in all manner of ‘incidents’ on the road (from major road accidents to misdemeanors like driving on the wrong side of the road and even obstructing other road users) are typically charged higher car insurance premiums that people with cleaner road usage records. Clearly then, if your road usage record is dirty, with all manner of convictions and tickets against you in the past, it should not come to you as a surprise when you are charged more in car insurance premiums than a person with a cleaner record.

The very car you drive, too, can turn against you when car insurance premiums are being worked out. Some car models, as you will come to discover, have been noted to be more prone to accidents than others. And if you happen to drive on of the ‘higher risk’ cars, it should not come to you as a surprise when you find out that what you are paying as ‘car insurance’ is higher than what your friends driving ’safer’ cars are paying. You can, of course, mitigate against the ‘high risk profile’ of your car by installing features like air bags and anti-lock brakes, which could see its risk profile lowered to be at par with the ’safer’ car models.

Younger people, perhaps due to hormonal action or ’sheer lack of wisdom’ have been noted to be - on average - much more ‘reckless’ drivers, with older drivers being considered ‘lower risk’ profile drivers. It should therefore not come as a surprise when all things held constant, your friends who are above 50 years of age end up being charged lower car insurance premiums than you, if you happen to be below 50.