Your insurance company takes several factors into play when it comes to determining your car insurance rates. Many things are common sense and then there are other things that may not have even thought of as a reason to base your car coverage on. The following factors are some of the things that the insurance industry takes into consideration when coming up with your premiums.
How is your driving record? That will be the first thing to be brought up by your insurance agent. The number of accidents you have had, the number of claims you have put in and the number of traffic violations you have been charged with during a three year period all play a big part in how much you will be paying for your car insurance.
Next up is demographics. How old you are and where you live play a big part in how much you will pay for your car insurance. Married women will pay less for their car insurance than unmarried men. Teenage boy will pay more than just about any group as they present the biggest risk to auto insurance agencies and they are the cause or involved in the most accidents on the road.
City slickers will pay more for their insurance than their urban neighbors. Living in the city will make your insurance rates higher than residents of the suburbs as insurers calculate the crime factor into your premiums. If you have a home and can keep your car in a garage overnight you will pay less than someone who must park their car on the street.
Choosing the right car may be more than picking out your favorite color. When choosing your next car you may want to check how your insurance rates will be affected based on the car of your choice. Sporty cars present a bigger risk than more family style vehicles. But on the plus side, auto manufacturers are including more and more factory installed safety features and that may entitle you to safety discounts. Anti-lock brakes, keyless entry, airbags and alarm systems all make your car less of a risk to replace or repair.
Another factor that is considered that you may not be aware of is your credit score. In the past few years insurance companies have been allowed to use your credit rating to determine your car insurance rates. Check your credit score to see where you stand and to make sure you don’t have any errors on it. You may just need to improve your ratings a little by paying on time and maybe even paying a few smaller debts off completely.
How many miles you put on your car each year is a big factor in how much or how little you will pay for your car insurance. The more you drive the more you will pay for your car insurance so if there is any way to cut down on your mileage you could save some money. If you have a car pool at work see if you can get in on it. If there isn’t one, why not start one up yourself.
Look over these factors and make any adjustments that you can and you may see a change in your rates. Try to drive less, install some safety features on your vehicle and clean up your credit, you may be able to shave a few bucks off your premium next time you renew your policy.