Getting The Low Insurance Rates
The insurance companies need you just like you need them. The insurance companies make money by having the maximum number of subscribers but by having to pay insurance coverage to a very small fraction of that number.
Let us talk about when would the insurance companies need to pay only to a small numbers of subscribers. The simple answer is by motivating the customers to stay safe in the first place. The insurance companies even reward customers who do not require any coverage for several years in a row. Such rewards result in motivating them further to stay safe and follow rules that in turn help the subscribers as well as the insurance companies.
Auto insurance rates can often be lowered if:
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You have a clean driving history with no traffic violation tickets or citations.
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You have a car that has a very low rate of being stolen. A new car, and especially of certain popular models like Toyota Camry or Honda Civic, gets stolen most often thereby attracting a higher auto insurance rates even though the car may not be very costly.
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Your car has safety features installed like anti theft systems, anti skid or anti rollover systems
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Your car has a good safety rating that allows the least injury to the driver and the passengers. Such cars get good ratings in the crash tests that are performed by several agencies.
Homeowners insurance rates can be kept low if:
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Your home has safety features like – smoke alarms, fire extinguishers or fire sprinklers installed. A home that is monitored 24x7 using a security system also attracts a lower homeowners insurance rate.
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Your home is not in a flooding zone. Some low lying areas are more prone to floods. By the way homeowners insurances may not always cover damages caused by water or flooding.
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The construction of your home is of good quality. A new home in that regard may have a lower homeowners insurance rate.
Health insurance rates are low for basically healthy people. The more healthy you are the lower health insurance rate you would get. Normally, the insurance companies categorize people into three or four categories based on their state of health. Though some health issues are hereditary and may not be under ones control, some habits like smoking are the ones that the insurances companies slap the maximum health insurance rates for.
And these were just a few examples.
Therefore in all the above cases, and there are many more such examples, the subscribers would hardly need the insurance companies to cover any expenses and therefore such subscribers are the cash cows. As a reward to them and to retain them as customers, the insurance companies always offer them the lowest insurance rates for almost everything insured.