West Virginia Car Insurance Rates
What determines West Virginia car insurance rates? Basically, the answer to this question lies in the way insurance business is financed. When an insurance company agrees to accept the risk, it needs to determine the amount of money it could payout if an insured event does happen. Where does the insurance company get the money to meet the payouts or claims? Simply, it comes from the premiums that are collected from the other policy holders. In simpler words, the premiums have to be kept at sufficient levels so as to cover the cost of the payouts that are to be paid out. Therefore, the more drivers who make a claim and require payouts, the higher the premiums for other drivers.
This may appear very frustrating to that motorist who has always been careful whilst driving, thus has never claimed on his or her car insurance before. However, the most important determinant of West Virginia car insurance rates is the overall level of claims that have to be settled by an insurance company.
How do you get the best car insurance rates in West Virginia?
Basically, car insurance rates vary from one insurance company to another. The car insurance quotes you get from one provider may be higher than those that are offered by another. As such, it is recommended to first undertake thorough research before making a final decision, or settling for a particular car insurance provider. An insurance company might choose to raise the payable premiums after you get involved in your first automobile accident, while another may have a policy to overlook a first accident.
That obscure insurance provider you want to settle for because of cheap insurance rates may cost heavily in the long run. As such, do not settle for less than a reputable and a reliable insurance company when you go seeking the best car insurance rates on the market. The chosen provider should come through for you when you need, rather than creating unnecessary hurdles when it comes to payouts.
Tips on how to reduce your car insurance rates
To find the best insurance rates on the market, you have to shop around for it. Actually, there are no doubts that a handful of insurance quotes from competing companies and a carefully planned strategy can help to lower the car’s insurance rates. Here are some tips on how to lower your car insurance rates.
- Pay insurance premiums in full: If a person pays his or her car insurance premiums on an installment basis, there is the likelihood of hidden costs (built in finance charge) somewhere. Typically, some insurance companies charge more than $15 for the privilege of carrying a few hundred dollars for a few months. To avoid this, ask your car insurer if they offer a fast payment discount. Actaully, some car insurance companies provide a discount to clients if they pay their premiums in full within the first ten days.
- Try as much as possible not to get caught up with a lapsed policy: The moment your car insurance policy expires, you should know that you automatically fall under the category of uninsured car insurance buyers. This means that you will have a hard time trying to get new insurance coverage and it is likely that you will be charged up to 20% more than a person who has a steady history of insurance coverage. As such, shop for your car insurance rates at least 30 days before it expires. In general, this will provide you with extra time to search and compare the best car insurance rates.
- Shop online for multiple West Virginia car insurance rates: Basically, competition breeds lower prices. With so many car insurance providers begging for business in West Virginia, it only makes sense to compare the rates each one of them is offering before making the final decision.
In the olden days, comparing rates was almost impossible, as it involved either visiting the companies in person or calling them over the phone. By the time you were through with one, you were too tired to go to another, thus it used to be quite time consuming and expensive. Nowadays, all that is needed is to have a computer that is connected to the World Wide Web and within minutes, you will have all the information you need to help you make an informed decision.