Shopping for cheap auto insurance can be hassle for anyone. We all have to have car insurance at some point in our lives. If you drive any type of vehicle, the law in most states requires you to buy minimum liability coverage no matter how young or old. There are many factors that affect your car insurance premium such as age, type of car, deductible, etc., but you may not realize that how often you drive can also affect your premium. Cheaper car insurance rates can often be obtained by simply driving less on a regular basis. Let's explore the "how and why" of this simple rate reducer.
What's Your Daily Commute?
Your insurance company will likely ask a few questions about your daily commute to work. Do you drive only within 10 to 15 miles to work or do you drive out of town, from 25 to 50 miles per day? An insurer might want to know if you drive mostly on country roads, the interstate, or in heavy traffic within city limits. And what's the reason for this knowledge? Where and how far you drive can greatly affect your risk factor when it comes to insurance coverage.
If you drive in heavy traffic or for long distances each day, you're more likely to be involved in an accident or receive a ticket for speeding or some other traffic violation. If you commute on the interstate frequently where speeds are higher than usual, this may also cause the insurer to consider you to be a high-risk customer.
If you commute less than most people, there's less of a chance for accidents. Your insurer may reward you with cheap auto insurance rates. For example, if you're a homemaker or work at home and rarely leave the house except to run a few errands, you will likely receive better rates than someone who drives 25 to 50 miles one way to work every day.
Less Risk; More Profits
From an insurer's point of view, drivers who very seldom visit the highway in their automobile pose less risk and bring more profits. These are ideal customers. After all, liability insurance is required in most states. Collision coverage is required by most banks while the borrower's car loan still has a balance. So in the business world, car insurance can be a product that must be purchased whether it is ever used or not. The driver who very seldom or never has a claim pays the insurer for years and years while rarely receiving actual service in return other than processing their payment. Insurers consider these ideal customers that keep the company's profits flowing. If you fall into this category as an "ideal customer" you will likely receive cheap car insurance when compared with more frequent drivers.
There are also PAYD (Pay As You Drive) policies in place in some states that enable you to pay for insurance as you go. This works well if you very seldom drive and need to be insured only for certain occasions or a short period of time. You'll basically pay a premium based on mileage as necessary.
As you consider where to buy auto coverage, be sure to use online auto comparisons to learn which cheap auto insurance options are available for your needs. Quote comparison sites offer pricing, policy details and more so you can find quality coverage at an affordable price.
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Chris Robertson is an author of Majon International, one of the worlds MOST popular internet marketing companies.
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