Car insurance rates translate into car insurance premiums. Insurance companies
use a number of different factors to determine your car insurance rate. Your
age, whether you're single or married, where you live, the car you drive, and
your driving record are the ones you probably know about. But there are other
factors that go into your car insurance rate that can have a positive or
negative effect on your premium.
When a car insurance company is determining your car insurance rate, a report
called a "CLUE" report is pulled. This is a common database used by insurance
companies to find out your history of claims. While each car insurance company
will check the report, different companies evaluate the information
differently. That's why it's important to compare car insurance rates among
companies. Premiums can vary from company to company for the same coverage,
same driver and same vehicle based on how each company evaluates your claim
history against their own loss history. In other words, if you're 35, drive a
mid-sized sedan and have a couple of claims for minor fender-benders, Company
"A" may have a high loss history of drivers with your profile. So the car
insurance rate you receive from Company "A" is going to be higher than the rate
you might receive from Company "B" who doesn't have a high loss history for
drivers with your profile.
A car insurance rate quote from different companies can help you decide which
company has the better rate for you. It may not be the same company your
parents have, or your friends or your neighbors. With online car insurance rate
quotes it's easy to shop and compare. In some cases, the online car insurance
rate may not be the final rate you will have to pay. You might have forgotten
about a ticket or accident that will show up on your driving record. Or, in
most states, your credit history can be used by the insurance company to
determine your car insurance rate as well. If your final car insurance rate
quote is higher than the online car insurance rate, ask what reports were used
to determine your rate. You may find that there is a ticket or accident on your
driving record that should have been removed, or information on your credit
report that needs correcting.
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