Low Cost Car Insurance: Myth or Reality?

One thing that is certain with the current economic situation is that prices will continue to rise. The need to cut costs and minimize expenses is a definite necessity these days. One of the easiest, yet often overlooked, ways is to get low-cost auto insurance.

There are several key factors that determine how insurance agencies quote auto insurance. Keep in mind that each and every insurance agency offers a different quote, so options are open if your current insurance agency isn’t to your liking.

One of the key factors that insurance agencies take into account when giving a quote is the age of the applicant/driver. The younger a driver is, the more insurance will cost. This is because young drivers, in the eyes of an insurance agency, are considered “high risk”; they tend to get into accidents more often and drive dangerously. The older generation also gets a higher insurance quote because (as much as they hate to admit it), their reflexes and alertness have deteriorated over time.

Another key factor is the location in which the applicant lives. If the neighborhood in which the applicant lives has a high number of car theft reports, the cost of insurance would, of course, be high, because the insurer would think that the chances of the applicant’s vehicle being stolen are considerably high. This brings us to the next factor, the type of car that is insured.

Really simple; A Dodge Viper is more likely to be stolen than a Chevrolet Aveo. If you insure an SRT 10, your insurance would go through the roof. If you insure an Aveo, your insurance would be very cheap. I may be exaggerating a bit, but it all comes down to the likelihood of the vehicle you’re insuring being stolen. The specification of the car also plays a role. Cars that have safety features like ABS and airbags would cost less to insure.