Insurance Changes That Can Raise or Lower Your Car Insurance Rate

Car insurance companies are looking at similar variables as before, such as your driving record.  However, they have now begun to separate drivers into more categories.  In an effort to more precisely calculate risk factors and prices, insurance companies have increased their categories from just several to hundreds of categories.  This means that there are more pricing levels used in their system.

Besides looking at a higher number of usual indicators, companies have also increased the amount of risk indicators.  If it is legal in your state, companies may be looking at your credit report.  They may also look at the type of car that you drive.  This is all in an attempt to relate these factors to claims.

If your statistics are good in these areas, you are likely to get a better insurance rate.  However, it appears that even people whose numbers are not so great may get a lower rate.  These changes in the risk calculating system of insurance companies might affect which company will have the best price for you.  Therefore, it makes sense for you to compare the rates of various companies before choosing or changing your service.

Remember to consider other factors besides the base rate when comparing insurance offers.  Some of the most significant include discounts on deductibles and premiums for good driving records.  You might also want to look at any special programs like new-car replacement that a company might include in your package.

Before shopping for insurance, it is a good idea to estimate your insurance score.  Your insurance score is different than your credit score.  While it is difficult to determine your exact insurance score, you might be interested in trying a paid service like the credit bureau’s TransUnion site, that will assist you in obtaining a reasonable idea of this score.

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