According to new research, insurance prices vary drastically between drivers with a good driving record and those with a tarnished one. The cost difference can be as much as $3,000 a year depending on which auto insurance company you’re using. A Chicago-based insurance resource company did the research to find out how much a bad driving record will really cost you.
The company says they created three driver profiles using made up people. All of them were 21-years-old, driving 2009 Mustangs and living in Palatine, Illinois. Each of the fictitious drivers had the same five to six year history. The only difference between them was their driving record. “Everything else about the drivers’ profiles was as identical as possible using the various online applications of six major auto insurance companies,” David Thompson, President and CEO of E-Insure Services, said in a news release. “Good Driver had no moving violations and no accidents, Bad Driver reported a couple of accidents, and Drunk Driver had a DUI conviction.”
The best driver of the bunch was able to get insurance rates as low as about $90 a month. The bad driver received quotes ranging from $166.22 to $238.05. And finally, a drunk driver was given a wide range of quotes. “One carrier wouldn’t insure Drunk Driver at all. Another wanted $347.86 per month. And a third gave Drunk Driver the low quote of $95 a month, almost as low as Good Driver’s lowest car insurance quote ,” said Thompson in the news release.
Even the company conducting the research says the broad range in quotes is surprising. “Car insurance companies look at a number of factors besides driving records to determine premiums. The miles you drive, your vehicle and its safety rating, even your credit score come into play. That’s why it really pays to get at least three competitive auto insurance quotes before you commit,” said Thompson in the news release. Thompson says most drivers can expect to pay about six percent more this year for author insurance compared to last year.
In order to save money, experts say it’s important to take advantage of anti-theft discounts, multi-car policies, and enlisting the same company for multiple insurance products. Thompson offered up other options for cutting costs, “Pay annually instead of monthly. Pay online at the insurer’s website. You should also review your auto insurance at least once a year and review your coverage options.”
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