Car Insurance Articles | Insurance

By: Andrew Mills

 When applying for car insurance, many factors are taken into account by the insurer. These factors include age, gender and region. All will be weighed before a decision is made on a policy and rates. In the US, age will often be considered in the policy, and of course one must be at least sixteen years of age to obtain a license and insurance. Sometimes, however, age may not be a factor.

Locale and gender come into play as an element in determining what sort of policy will be available. Younger drivers are a higher risk, generally speaking and premiums paid will reflect that fact. If the driver keeps a good driving record, there is an incentive in the form of lower premiums in the future. Again though, there are times when lower rates are offered regardless of the age of the driver.

Car insurance companies will sometimes offer low rates as a sort of loss leader (a technique of getting customers to a business by offering an especially low price on something). However, once the prospective policyholder is there, the usual factors of region, age and gender will once again be considered when figuring rates of premiums. Shop around for insurance, each company offers different plans and rates. GEICO, for instance often uses the offer of lower rates as a lure to customers - caveat emptor though, they say you COULD save as much as 15%, no promise is actually made with regard to rates.

Gender is another factor that comes into play when car insurance premiums are the subject at hand. At one time, women were considered a higher risk, with car insurance premiums reflecting that. It turns out, however, that the opposite is the case and now women receive lower premiums on car insurance. If you are a woman who is paying high rates on your premiums, you might want to look around for a better deal on your car insurance; a lot of companies have dropped their rates for female drivers.

The vehicle that will be driven also matters. An unusual or collectible car will naturally cost more to insure, as the replacement and repair costs are much higher. Understandable enough. These sorts of vehicles also face slightly higher risks, being a desirable target for thieves, and more exposure to potential damage (think of cars hauled or driven all over the place for car shows, for instance).

A custom vehicle may not have insurance offered by your company specifically for such vehicles. You'l want to look around at what various insurance companies can offer you in terms of insuring your custom car - some will charge higher premiums for such cars, others lower.

Low risk individuals receive lower rates of premiums all around. A good driving record will certainly save you money, as will being in the right demographic as far as insurance companies are concerned. Insurers seem to favor people around the age of 50, with premiums being lowest for this age group. As with any other group, do some research, your insurance company may not be offering you the best rate or the discounts another insurer might.

One way to investigate car insurance is to get a quote for car insurance online. This is a lot easier than spending a lot of time on the phone to insurance companies or worse yet, waiting around in an insurance agency office. You can get quotes from many different companies online and compare for yourself. Buying your car insurance online can also be a good thing - it keeps overhead low for the insurer, which means lower rates for the consumer.

Some car insurance companies offer lower rates to senior citizens. The elderly drive less than other age groups, and customized packages for older drivers have been devised which offer less mileage, but lower premiums.