Insurers look at many variables when determining how cheap your auto insurance will be. Ultimately, the price an insurance company offers you will be determined by your risk profile — meaning your likelihood of having to file a claim during a policy period — and that insurer's business strategy.
When you use AutoInsurance.com's online quote form, we'll ask for your ZIP code and other pieces of information that will be necessary for insurers to get a better sense of your risk profile. If your driving history and certain personal characteristics indicate that you're less likely to file a claim, you'll likely be considered to have a low risk profile. In most cases, drivers with low risk profiles will have an easier time finding cheaper insurance coverage. But some coverage providers actually target drivers that are riskier to insure and will offer them low cost coverage when compared with most insurers. Since pricing models are so varied from insurer to insurer, the only way to know you're getting the cheapest coverage available is to shop around.
According to the National Association of Insurance Commissioners1, drivers who are over 25, female, married, don't have accidents on their records, and don't live with younger drivers tend to have fewer accidents and, consequently, get more affordable rates. But even if drivers don't fit this profile, they can still get cheaper coverage by shopping around and maximizing any opportunities for discounts. Here are some tips for getting discounted rates:
The results of a 2011 survey from consulting company Deloitte2 showed that 8 out of 10 shoppers consider how cheap a policy is to be an extremely or very influential decision when changing auto insurance carriers.