Car insurance is confusing to most consumers. Much like airline tickets, it seems that the prices of insurance vary widely, for no reason at all. To understand car insurance rates, one needs to understand what determines the price of the policy. The record of the driver and the value of the car are the two most significant variables. Other variables that effect insurance rates, these include; coverage desired, and the neighborhood of the insured person. Luckily, it is not difficult to get cheap car insurance; as long as patience is had and research is done.

As mentioned, driving record is by far the biggest factor in determining car insurance premiums. One cannot change the past, but, anyone who has a record may be able to take a drivers course. A lot of states allow drivers to take points off their record by going to a short class on driving safety. Usually the courses cost less than $100 and the cost will quickly be recouped in lowered insurance costs. Classes can be taken for minor infractions such as speeding or running a stop sign. Classes cannot be taken for larger violations including DUI’s.

Anyone looking to find cheap car insurance must shop around. This includes shopping around when policies are renewed at 6 or 12 month intervals. One way to shop around is to make a spreadsheet. On that sheet, come up with a list of about a dozen companies to from whom to obtain quotes. Then, about a month before, start getting quotes from all of the companies on the list. Remember to take all costs into consideration, some insurance companies quote 6 months while others quote 12 months. Another cost that is sneaked in by some companies is a fee to pay monthly rather than a lump sum payment.

A lot of people find the cheapest car insurance, and do not worry about customer service. There are some cheap insurance companies that offer inferior customer service, but often offer much lower premiums. Anyone looking for insurance will have to decide for themselves if they value customer service. For drivers that have gone 20 years without a ticket or accident, probably will not be concerned with excellent customer service.

An often overlooked way to get lower premiums is using the same company for car and home insurance. This is a great way to potentially lower premiums for both home and auto policies. Another safe bet to save is to have multiple cars with the same insurer. This is a great way for a married couple or even family to save money on insurance. Many companies will give a 10 percent discount just for carrying multiple auto policies.

Anyone looking for cheap insurance premiums will do well by shopping around. Taking a few moments to understand what goes into premiums will also help one understand what they can do to obtain cheaper quotes. Remember loyalty does not always pay off in regards to car insurance.