Cheap Car Insurance - Introduction

Welcome to our Cheap Car Insurance mini website. Here you will find useful information about how to keep your car insurance premium low. Here at Cheap Car Insurance, we also provide the most current news about cheap car insurance and a list of those car insurance companies which provide the best rate. Our list can be found in the lower right navigation bar.

Here you will also find our Auto Book Store. Our Auto Book Store provides books about car insurance, car maintenance, and car buying guides.

Because this car insurance website is also a news journal, our site should also be useful to the car insurance agent who needs to keep up with what is happening within the car insurance industry. Because our website provides valuable information on how car insurance premiums are derived and therefore how to obtain the lowest possible rate, along with car insurance news, this site serves equally well to the car insurance customer and agent.

The following is the set of criteria used when a car insurance company determines whether of not you have a cheap or not so cheap car insurance:

Premium Factors For Cheap Car Insurance

State of Residence
Whether or not you have a cheap car insurance premium depends on the state in which you reside:
Drivers who reside within a state with a high frequency of accidents will pay higher premiums then those drivers who reside in a low accident rate state.

City, Suburb, or Country Residence
Whether or not you have a cheap car insurance premium depends on where you live. Do you live in the city, suburb, or country?:
City dwellers will pay a higher premium then suburb or country dwellers due to the higher frequency of accidents in the city.

Car Theft Frequency in Area of Residence
Relative frequency of car theft in your area is a determinating factor for paying cheap car insurance:
If you live in an area where there is a higher frequency of car theft, you will pay a higher premium.

Number of Car Thefts Nation Wide Per Year
Car thefts nation wide costs the car insurance industry over 4 billion dollars per year. This cost has to be covered by increasing car insurance premiums. Refer to the video on this below.

Age of Driver
Whether or not you pay cheap car insurance is determined by your Age:
Drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.

Credit Rating
Many insurance companies view having a poor, or even no credit history as higher risk. They want to make sure that you can actually pay the premium. A poor credit rating may mean you can not have cheap car insurance.

Gender of Driver
Gender is also a detminating factor for whether or not you pay cheap car insurance:
Statistically women are safer drivers than men.

Miles Driven Per Year
Paying cheap car insurance is also determined by how many miles driven per year:
Driving fewer miles per year decreases the likelihood of an accident.

Reason for Driving
Car insurance premium is dependent upon why you drive:
Do you drive commercially? If you drive for a living, you have a greater probability of getting into an accident and most likely will not be paying cheap car insurance.

Marital Status
Car insurance premium is determined by your marital status:
If you are married you will most likely pay a cheaper car insurance premium.

Driving Record
Car insurance premium is determined by your driving record:
This is the big one. This is probably the most important determinate for car insurance premium. Do you have a history of accidents, citations, DWI, or reckless driving. If you do, you will not pay a cheap car insurance premium.

Type of Vehicle
Car insurance premium is determined by the type of vehicle you drive:
Do you drive a cheap car or an expensive car. If you drive an expensive car, you will not have a cheap car insurance premium.

These are the determinate factors in terms of whether or not you have cheap car insurance. It pays to shop around because different car insurance companies will weigh each of the above factors a little differently resulting in a difference in premium.

Probably the most important factor in terms of whether or not you obtain cheap car insurance is your driving record. The more accidents that you have on your record, where you are at fault, the higher the premium.

For those not driving with car insurance, this is not only illegal in most states, it is a formula for disaster. For those who do not want to pay for car insurance, consider the following statistics for car accidents in the United States for the year 2005:

• 6,420,000 cars were involved in accidents.
• 230+ billion dollars was the cost for these accidents.
• 2.9 million injury cases.
• 42,636 car accident deaths.
• 115 persons die each day in automobile accidents.
• That is one death from a car accident every 13 minutes.
• Worldwide, an estimated 1.26 million deaths took place from car accidents (year 2000 statistic).

Given these statistics, it is foolish and irresponsible to drive with no car insurance. You can not afford the car insurance, you simply should not be driving.

Cheap Auto Insurance. Get quotes now!

Remember this. In the United States just about anybody can obtain a drivers license. Also, just about anybody can hold onto their drivers license. This means the roads are full of all types of drivers with very diverse driving skill levels. Our American government, both local and federal, looks at the right to drive as a basic human right which is granted to just about all individuals. Hence, the roads will always be full of good and not so good drivers. Obviously in this situation, you must have car insurance.

One of the biggest catalyst for driving up car insurance premiums is the number of claims filed per year in the state you reside. Obviously some states have more claims filed per year compared to other states. If you reside within the Northeast, you are most likely not paying a cheap car insurance premium, compared to a Midwest resident. As a matter of fact, four out of five of the highest insurance premium states are within the Northeast. The following is a break down of insurance premiums for the five states which carry the highest premium.

State	Rank	Premium for 2001
New Jersey	1	$1,182.54
New York	2	$1,161.27
Washington, D.C.	3	$1,156.23
Rhode Island	4	$1,027.03
Massachusetts	5	$1,013.46

If you have driven within the Northeast, such as I-95, Jersey Turn Pike, New York City, or the Boston area, you can understand why the area has the highest auto insurance premiums. Drivers within this area of the country are extremely aggresive, subsequently more accidents take place and the residents of these higher premium states must pay for this.

In any case, the most prudent driver will drive defensively. Part of being a highly skilled driver is being able to avoid aggresive, irresponsible, and low skill drivers. Doing so will result in fewer accidents and a cheap car insurance premium for you. Aggresive, irresponsible, and low skill drivers will pay a higher premium and contribute to the overall higher premium for that state.

Cheap Car Insurance - Conclusion

Conclusion, if you want cheap car insurance, do not reside in a state which has high premiums, do not be a young driver, drive fewer miles per year, be married, have a good credit rating, do not drive an expensive car, live in a low car theft region of the United States, decrease the number of car thefts nation wide per year, and finally, do not drive commercially. Sounds sort of ridiculous because some of these factors are not controllable. Point being, there is one factor you can control if you desire cheap car insurance, and that factor is how safe and responsible you are as a driver. Your driving record is the most important criteria car insurance companies use when determining your premium. So if you want cheap car insurance, shop around for the cheapest car insurance, and use the list of cheap car insurance providers which we have included within our right side navigation bar, and above all, drive safely.

Video summary: In 2004, 225,000 cars were reported with duplicate VINs, costing the insurance industry more than $4 billion. That means higher insurance rates for everyone. To avoid buying a used car with a stolen VIN, check the history of the title.

The following is the most current news from the car insurance industry. Updates will take place daily. Bookmark this site, or click on the orange icon in the navigation bar, and place the XML URL into your agreggator reader to view daily news updates.