If you recently received your car insurance renewal and your rates have increased it is the perfect time to learn how to find a cheaper Pennsylvania car insurance quote.  In the state of Pennsylvania, drivers are required to purchase and maintain continuous car insurance to satisfy state mandated financial responsibility laws.  If you are caught driving without insurance you could face severe punishments including fines, registration suspension, driver license suspension, and up to 6 months in jail.  Insurance companies rate insurance premiums based on how likely you are to cost the insurance money over time.  When you start to request auto insurance quotes, understand how insurance companies factor in risk to rate your insurance premiums and learn how to lower your premiums without lowering your coverage.


How Does Annual Mileage Factor In?


One of the first questions your insurance agent will ask you following your vehicle information is how many miles you drive on a weekly, monthly, or annual basis.  While you may think this question is irrelevant, to the insurance company it is very important.  Insurance companies rate your premiums based on statistics and risk.  If you are on the road more often then another policy holder, you are more likely to be involved in an accident.  This is why you should disclose a very accurate figure when you are obtaining a Pennsylvania car insurance quote.  Most insurance companies rate based on mileage bands.  The lowest premiums are assigned to drivers driving between 1-3,000 miles and the rating bands will go up in premiums with 15,000 or more being the highest.


Why Do Insurance Companies Care How I Use My Vehicle?


Another question pertains to how your vehicle is driven.  Vehicle usage is very important to factoring insurance premiums.  Studies show that individuals who commute to and from work or school generally drive under stress.  Heightened levels of stress increase the occurrence of accidents.  This is why commute and business usage classifications are rated higher than pleasure use.  If you only drive your vehicle around town for pleasure, make sure to report this to your agent to prevent being charged a higher commuter rate.


What Does Garaging Location Mean?


Some individuals prefer to receive their mail at a different address.  If this is the case, be sure to advise your agent that your vehicle is garaged at a different location.  The “garaging” location generally refers to where your vehicle is parked a majority of the time.  The rates for comprehensive and collision are based off statistics in the zip code where the vehicle is parked.  If your mailing zip code has a higher rate of claims, you could be paying higher premiums without even knowing.


Insurance companies consider much more than just driving record and the value of a vehicle to calculate insurance premiums.  Hundreds of different algorithms are used to add and subtract from the base premium of a policy.  Make sure you understand the importance of giving accurate information and you will find a low-priced Pennsylvania car insurance quote.