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An auto insurance guide contains information about the factors used to determine auto insurance rates, tips to reduce auto insurance costs and also the annual vehicle insurance rates offered by different auto insurance companies for typical driver categories. Cost of an insurance policy or insurance rate primarily depends on the extent of risk involved. However, there are also few other important factors based on which auto insurance companies charge annual vehicle insurance rates. Every insurance company determines charges on an auto insurance policy for every driver based on his/her driving record, automobile type, year of manufacturing and area of residence. Auto insurance rates tend to increase if the driver has any past history of accidents, speeding tickets or claims. Another factor that influences auto insurance rate is the credit history of the applicant. Auto insurance costs can be reduced by improving driving records and taking courses in driving. Cars equipped with better safety features such as air bags, anti-braking system and burglar alarms are offered discounts on insurance rates. Another way of reducing auto insurance rates is to increase the value of insurance deductibles.
Ratings of companies providing auto insurance are also included in an auto insurance guide. It is important to check out the financial strength and the complaint history of an auto insurance company before opting for one. Auto insurance companies are rated based on consumer satisfaction in terms of auto insurance rates, policy options and their approach towards handling insurance claims. Also considered are factors such as the overall experience of the company in the field of insurance and its financial strength.
Based on these factors, auto insurance companies are rated and placed into 6 important categories which are as follows:
- A++ and A+ as Superior
- A and A- as Excellent
- B++ and B+ as very good
- B and B- as fair
- C++ and C+ as marginal
- C and C- as weak
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