What is the cheapest place for car insurance?

Answer 1

Insurers are licensed by the individual states, and most states regulate insurance rates. A rate is the price per unit (usually one-dollar) of coverage. Therefore, premiums derive from rates.

Factors that enter an insurers rate structure include the make and model of the vehicle, the location of the vehicle and the driver, the driver's driving history, the driver's age, and various other factors. Numerous kinds of discounts are available as well, including those for driver's education courses, safety equipment on the car, no-accident discounts, multi-car discounts, and others.

The ultimate premium that you will be charged will also depend upon the coverage the you buy. For example, your state probably requires that you maintain a certain level of coverage, but amounts beyond that are optional. If you choose not to exceed the minimum levels, the premium will be less than if you do exceed them.

Insurance companies compete with each other both on premium and on service. Therefore, you may be doing yourself a disservice if you opt for a lower premium with a company that does not have stellar service. You are well advised to consult with a local licensed insurance agent or broker to review your needs. Be sure that any insurance that you do obtain is issued by a licensed insurer. Licensure can be confirmed by contacting your state insurance regulator in the state capitol.