Why Do Car Insurance Companies Differ in Rates?
Reader’s Question:
My boyfriend also lives in San Francisco, California and he has a different car insurance rate as compared to me. Why is that? I mean we are both from the same place but we have different car insurance companies. I am just wondering, why do car insurance rates differ from each other?
Cathy
Every car insurance company has its own guideline that it follows in setting auto insurance premium. The very basic rule in setting a person’s auto insurance rate would be on how much risky is it to insure a person. This includes (but is not limited to) like for example how much it will cost your insurer to insure you, how much claim is likely to be made by you and a lot more. But it always boils down to one thing – on how much money your car insurance company will likely spend in an event that they take you under their wings.
In general, car insurance companies set their auto insurance premiums depending on the policyholder’s age, sex, driving history, claim history, credit history, type of vehicle, place of residence, and driving miles. This is an industry wide practice. So going back to your question, aside from the fact that you two have different car insurance companies, there are also several factors being considered. And I assume you got differences with those factors.
If you would like to know specific details on how you can save on your auto insurance rate in San Francisco, California I would say it’s best to ask your car insurance agent. If you are paying too much (or your boyfriend is) on your car insurance premium, then try to shop around for car insurance quotes through websites. I’m sure you’ll get so much information about it.
Military Auto Insurance Discounts in Iowa
Reader’s Question:
My wife was recently recruited by the US Army here in Sioux City, Iowa, and is now serving abroad. We were wondering what kind of discounts can we get for car insurance if we put our policy under her name. Any info is appreciated, Thanks!
Julius
Sioux City, IA
One of the many benefits of joining the military is that you get discounts or get deposits waived to almost any bill you may have under your name. Car insurance is no exception to this. The majority of car insurance companies out there that provides discounts towards military servicemen and servicewomen. Think of it as their way of showing patriotism (and the fact that most military personnel make for very reliable customers).
One notable, military-friendly car insurance provider is GEICO, where Active duty and Retired military personnel, as well as Reserves and individuals serving under the National Guard can get up to a fifteen-percent (15%) discount towards their total auto insurance premiums. Soldiers who have been deployed to countries or areas considered by the Department of Defense as Imminent-danger-pay-areas (e.g: Iraq or Serbia) can expect even more savings and discounts passed towards their auto insurance bills.
It is best to consult your car insurance agent there in Sioux City about offers and benefits of getting your car insurance under your wife’s name. It will also be a good idea to do some research and compare different auto insurance providers if you feel you’re not getting much savings at all. You may be able to get better rates or better discounts with a competitor, or haggle with your current car insurance provider to keep you and your wife as a customer.
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