Auto insurance rates depend highly on the type of vehicle which is to be insured. Vehicles are categorized in terms of size and cost for deciding the insurance rates. Larger and sportier, high value vehicles have high car insurance rates as compared to the smaller, less expensive ones. To repair the bumper on a Ferrari may cost $7,500 versus $500 on a Toyota Prius.
Additional factors affecting auto insurance rates:
1. Type of Car
Luxury cars definitely have comparatively higher insurance rates compared to smaller, less costly ones. Also paying for the theft of an expensive car will cost the insurance company much more. Therefore, to keep their potential expense budget at par with their risks, they have no option other than raising their car insurance cost for luxury cars. If the car is a less expensive one, then obviously the rates will be cheaper. Thus, it’s clear that cheap car insurance depends directly on the cost of the car.
2. Driving History of the Car Driver
The insurance agencies will never hesitate to provide you with cheap car insurance but for that your driving report card should have a plus sign. If the driving history shows a clean track record, companies will expect minimum of accidents in the future and maximum of profit, which in turn will help you get a cheaper car insurance quotes.
If you have a bad record and are looking forward to cheap vehicle insurance, need not worry. Get trained from a good driving school. It will make you capable of achieving desired car insurance rates.
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3. Your credit rating
Insurance companies will check your credit as part of the auto insurance application process. Good credit rating builds the insurance companies’ confidence in you, which can secure a cheap insurance policy for you. The insurance companies are not directly affected by the customer’s credit limit as the insurance policy stands cancelled the moment you don’t pay for it. This is a widely unknown yet highly important factor in qualifying for the cheapest insurance rates regardless of type of car, location you reside in, your age and driving record.
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