How to Choose Cheap Car Insurance & Compare Premiums and Rates

If you are looking to buy cheap car insurance then before you choose which company you are going to select, you need to understand how they calculate your premium and rates.  This way, before going in, you’ll be able to negotiate for a better rate or more cover.

Driving Record – The first thing that car insurance companies will look at is your driving record.  They will look at everything from past traffic offences and previous accidents (whether you were at fault or not).  Obviously the worse your driving past is, the higher your premiums will be.  However the good news is that most companies will only look back three years so if you can keep a clean record for that time, you’ll be financially better off.

Prior Insurance Cover – The next thing they look at is your previous or existing cover to see what insurance protection you have.  If this is your first time insuring your car, or if you’ve had a previous bad relationship with your last insurer you’ll have to pay more to compensate.

Location – In every town and city, there are areas that are considered a higher risk and therefore your premiums will be higher if you live in those areas.  Generally a nice safe suburb will get you cheaper car insurance that a busy city street will.

The Car You Drive – It’s much more expensive to insure an older car, than a newer car due to newer technology and safety measures included in later models.  So if your car includes air bags, alarms, side impact protection etc, you insurance will be cheaper.

How Often You Drive – If you keep your car in the garage most days and only bring it out on weekends, you will pay much less than if you use it regularly.  This factors in risk, as the more you use it, the more likely you will be to have an accident.

Those are the main criteria that most car insurance companies will look at when determining your rates and premiums.  You can then use this information and perhaps change circumstances that you can control to lower your costs and get cheaper insurance.