Compare Cheapest Auto Insurance Rates Online

Know Why It Will Be Difficult To Qualify For The Best Car Insurance Rates

• Insurance Fraud – Some drivers file false claims and dupe car insurance providers and their numbers have consistently increased over the past few years. Surveys indicate that insurers lose $ 32 billion every year on insurance frauds and this is because drivers are dishonest in providing true information. Many people have even filed claims for events that really never took place and such things have invariably propelled insurers to increase auto insurance premiums.
• Unfair Rate Practices – While assessing risk levels, insurers may use different parameters and these may include driver’s age, gender and type of car being driven. Besides, there might be some other factors like driver’s credit history, past driving record and number of claims that were filed previously previous which may indirectly impact premium rates. From the insurers’ viewpoint, all these aspects have bearing when settling claims prompting them to hike car insurance premiums.
• Credit History – Credit profile of drivers is another major factor which can lead to increased auto insurance rates. Typically, insurers use credit ratings for determining how responsible a driver is when on road. Studies show that drivers with bad credit scores may have higher probability of filing claims as compared to those with good credit. But only some states allow insurance providers to consider credit ratings as a factor for calculating premiums.
• Price Optimization – The term has reference to the methods that insurers use to determine driver’s sensitivity to increase in premium rates. Although drivers who are loyal to insurers may reap enriched dividends, it is still advisable to switch over to new insurers. For that you can do extensive shopping and find out what other firms have to offer. There are chances that you might be able to secure a much better deal.