Big Changes In Auto Insurance Can Mean Big Savings

A lot of people aren't aware that there have been some major changes in how insurance carriers rate their drivers. Nowadays tickets, accidents, DUI/DWI, violations, and suspensions do not play as big a role in determining insurance rates as they used to.

Since the mid 1990s there's been a major shift in car insurance carriers' appetites and the way every auto insurer looks at its drivers and the way they drive.

As recently as 1989 there were not too many recognizable car insurance carriers who were aggressively promoting personal automobile coverage. You are probably familiar with the carriers I'm talking about - companies such as Nationwide, State Farm, Farmers, and Allstate are the four major players in this industry that most of us have heard of.

In the past if you didn't qualify for their tough underwriting guidelines it was pretty much a given that you would not be able to get car traditional insurance. Instead you would have to apply for - and pay ridiculously high premiums for - the State Automobile Insurance Assigned Risk Program. Most people knew this as being an "assigned risk."

These policies and their premiums were extremely expensive. The premiums were actually considerably higher than what was necessary to adequately underwrite the risks. The insurance companies made out like bandits with their assigned risks. These companies had to love it because aside from being highly profitable they had no competition in this section of the market.

Then in the latter part of the 1980s no-fault insurance rules changed. Some companies such as Progressive came to the fore as alternatives to the Assigned Risk plans. These companies knew that they could still turn a profit even if they gave drivers who had less than perfect driving records their coverage at a substantially lower rate than these drivers were paying as assigned risks.

Now that we're in the second decade of the 21st century there are more than 100 companies that are vying for your insurance premiums, no matter how good or how bad your driving record is. Many of these companies offer low down payments along with low monthly payments. And some companies don't require any down payment at all.

Unfortunately, the majority of car insurance agents don't have any access to these low priced programs. That's because the insurance companies only select insurance agencies that have a proven track record of being profitable, those with a history of meeting volume requirements, and those that have "a history of loyalty and fair play."

Some of the companies online represent insurance carriers that are part of this low-cost program.


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And you can find one such company for low Car insurance quotes at http://www.insuredirect.com/car-insurance-quotes.html