What is it that drivers want to know most about car insurance companies? Usually those questions range from wondering who is the least expensive insurer to who has the best coverage and the questions continue on and on. All drivers have their own inquiries about an insurer, and all of these inquiries stem from wanting to have a good experience when purchasing a new policy and throughout the policy period. No motorist wants to chose a company which is going to be a hassle throughout the length of the policy, so they go searching, looking for information to answer their questions. We have provided answers to some of the more popular questions regarding companies providing auto coverage below. Any of your particular questions that aren’t answered here may be answered elsewhere on our site, so don’t hesitate to use our search box to learn more.

What company is the cheapest?
This is one of the most popular questions asked about insurers. Drivers want to know which companies are going to offer the lowest prices. Insurers change their base price for coverage when they see a need to do so. This occurs when the company has been paying more claims than in the past or they have lost a number of customers. By increasing their prices they are making it possible to continue to make a profit. Another reason an insurer’s price fluctuates is due to the driver who purchases a policy. Each driver will pay a certain rate based on their circumstances. Between the two of the reasons, we cannot make a statement about who provides the absolute lowest price. However, we can guide drivers to find the lowest price they could be paying from a certain insurer.

Anyone who hasn’t heard about our quote comparison tool will benefit from continuing on reading. This is a method we provide to every driver so they can find low prices for a policy from a local insurer. By simply answering a few questions, the applicant can view a number of quotes and choose a policy from that list. To get to the quote tool, find the white box requesting a zip code located on the center of our homepage or on almost any of our other webpages. Once the zip code is entered and “Go” has been clicked, a new page will open which contains some easy questions that need to be answered. These questions are the same type of questions that would be asked by an insurance agent when putting together a new policy for a driver. The difference is, there is no talking to another person involved and it goes much faster. Basic information about the driver, vehicle, and coverage wanted for the policy will be needed in this questionnaire. Drivers should note that providing false information will result in inaccurate quotes. The quote page will be available once the answers are submitted, and the driver can look for the cheapest price offered on that page.

How do insurance companies decide on someone’s rate?
Another popular question is from drivers wondering how rates are decided by the insurer. We believe once a driver knows the answer to this question, they have the power to decrease their price as much as possible because they know what insurers look at. The driver can make changes – either immediately or over time – to allow the insurer to decrease the premiums. Rates are determined after the insurer has looked at the driver’s background and age, the vehicle’s age, its own background and where it is stored at night, and then added to the price is the cost of the coverage that is bought by the policyholder.

Knowing more about what is looked at is important to help a driver save money. The driver’s age plays a factor because this and knowing when the driver earned their driver’s license shows the insurer how much experience the driver has had driving. Young and inexperienced drivers will be charged a higher rate and possibly categorized as a high risk driver, depending on how many years they’ve been driving. Also coupled into this thinking is the fact that younger people generally do not have much experience in dealing with stressful situations and may not be able to steer away from an accident.

The motorist’s driving record also plays a role. Insurers will charge someone with many negative incidents on their record higher rates because the insurer is sure they will need to pay a claim for this person at some point. The less tickets and accidents a person has on their record, the cheaper their premium will be. If a driver has a “colorful” record, they can work on cleaning it up by refraining from disobeying traffic laws and paying attention to their surroundings. This helps with avoiding more tickets and accidents on their record.

Information about a vehicle affects the premium as well. Insurers give cheaper rates to insure a vehicle that is not a sports car. They need to know the make, model and year of the car to make the price. Estimated annual mileage is a factor because the more miles put on every year indicates how often that vehicle is on the road. The longer a car is on the road, the more chances there are that it will be involved in an accident.

Finally, the coverage wanted for the policy is added to the price because each coverage option has its own cost. Drivers who want lower rates can work on their driving record to make it free from errors. They can purchase insurance friendly vehicles or speak with their insurer about which cars cost less to insure. Lastly, they can watch the amount of coverage they purchase to lower their final price (not all cars need full coverage).

While this may answer only a few questions about insurance companies, they are among the most ideas questioned. For more information about car insurance companies, check out what else QuoteClix.com has to say. We provide motorists with the tools and knowledge they need to get better coverage and lower premiums.