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Illinois Car Insurance Discounts

In Illinois, you might be surprised at numerous amounts of motorists who believe that their insurance premiums are predetermined by their automobile insurance company. As a result of this, most believe that there should not be any reason for them to seek insurance elsewhere. This belief is simply not true. Insurance companies segment their rates differently according to a consumer's characteristics. The rate that a neighbor or acquaintance pays for his premiums will likely be different from the rate you pay. Because each motorist wants to ensure that the rate he or she pays is the lowest possible, it is helpful to know how your characteristics affect your car insurance premiums and what discounts may be available to counteract your premiums. There are a plethora of discounts available to motorists. There are bound to be several that fit your variables.

An insurance company takes a close look at a motorist's characteristics when performing a risk analysis on their potential new client. Your characteristics include information about your driving history, your vital statistics, the car you wish to insure, and your coverage needs. Each of these variables is assigned a risk value. The sums of these values are then compared against the national average claims rate for motorists who share similar traits. The results of the comparison are then used to determine what you will pay in premiums for car insurance.

The first and likely the most important factors an insurance company views are a driver's personal statistics. Your age is an example of such a statistic. Motorists who are under the age of twenty five tend to pay the most amount of money for premiums when compared to other drivers. However, if you are a young adult driver who is in school, you may able to utilize a good student discount to your advantage. Generally, a B average or above suffices for this discount. You should contact your insurance agent as to what particular details your insurance company requires.

Senior Citizens and Car Insurance Discounts

In the opposite vein, senior citizens tend to pay more in car insurance premiums as well. Automobile insurance companies tend to assume that after a certain age, a motorist is going to suffer from diminished mental and physical capacities. This could, therefore, increase the potential for the senior citizens to be involved in an accident. While most motorists in Illinois realize this is not always necessarily true, there are states that are taking steps to combat the exorbitantly high premiums senior citizens are dealing with. Completing a defensive driving course or a driver's educational class may result in a discount for adults.

Another characteristic that car insurance companies examine is your location. Your zip code is generally one of the first pieces of information an insurance company requires of you. This is due to the information that can be derived from your zip code. An insurance company can derive a sense of your financial well being from your location. While this may not be the most accurate method to do so, it is assumed that if you live in a suburban address versus an inner city neighborhood, you are better off financially. Your zip code also allows an insurance company to draw up information on your community's crime rates. The crime rates allow the insurance company to surmise how likely you are to be victimized by a crime, like theft or vandalism. If you live in a high crime neighborhood, installing an alarm or other anti theft device can result in a reduction of your premiums.

Two more highly influential factors that an insurance company takes into account are your driver's license record and your credit rating. Your driver's license record is viewed as an indicator of the sorts of driving patterns you engage in on the road. More risky behaviors equal a high tendency to be involved in a collision. If you have an accumulation of tickets or a history of previous collisions on your record, it is almost given that you will be paying considerably higher premiums than a motorist who does not. As an incentive for their customers to remain accident free, most insurance companies will offer a discount for a clean driving record. This rate reduction can be as high as twenty percent of the total costs of your premiums. Typically, you must remain accident or violation free for three to five years in order to qualify for this discount. Your credit history is an indicator of how likely you are to honor the financial agreement between the insurance company and yourself.

How Your Vehicle Affects Car Insurance Discounts

The vehicle you drive is also going to be highly influential in the price that a motorist will pay for his or her premiums. If you are looking to purchase a new car, you may want to consider buying a car that has multiple safety features. While anti lock brakes and airbags are becoming standard safety features on most vehicles, did you know you can qualify for a discount simply by having them?
A motorist should be aware that a higher end, luxury vehicle is going to be noticeably more expensive to insure due to the fact that it will be quite expensive to repair in the aevent of an accident. When purchasing a new car, it would behoove you to investigate the theft rate for the vehicle. If a car has a high theft rate, it can increase your car insurance rates.
If you have conducted business with one particular insurance company for an extended period of time, you may qualify to receive a discount of your premiums for customer loyalty. Your insurance company may also offer discounts if you combine multiple cars onto one policy. Discounts are also available to consumers who bundle their homeowner's insurance, car insurance, and even life insurance needs with one company. It may be wise to inquire with the human resources department of your employer and see if company employees are given a discount for conducting their business with one particular insurance company. The employees of certain businesses or members of a professional organization can qualify for reduced rates. You may also qualify for a discount if you are the member of a nationally recognized motor club, such as the AAA.

Average Auto Insurance Rates

The average cost of an insurance policy in 2009 has been roughly $1,214. By comparison, the national average has recently fallen to $1,794. Illinois, as a state, enjoys some of the lowest car insurance rates in the nation. However, the cost of a car insurance policy in 2009 was 9% than it was in 2008. The year 2008 saw a 2% increase in prices from 2007. These facts simply highlight how unstable the market for car insurance can be. There are more than twenty licensed insurance companies in Illinois. If you are unhappy with the discount offerings of your current provider, it may be time to obtain a quote on your car insurance and investigate what else is available to you. Discovering lower car insurance rates starts with an understanding of the various factors that will be used by an insurance provider to determine your rates. Having knowledge of these variables will allow you to take full advantage of the car insurance discounts available in Illinois.


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