You may be surprised at the factors that your insurance company takes into consideration when they calculate your 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. Here are some factors that the insurance industry takes into consideration when coming up with your premiums.
The safer you drive the lower your rates will be. The first thing your insurance agent will ask you is if you have had any accidents or traffic tickets within the last three years. The number of accidents you have had, how many 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.
Your age and your location are next up in figuring out your rates. And your gender as well as your age play a big part in how much you will pay for your car insurance. If you are a married woman you will pay less for your car insurance than an unmarried man. And teenage boys 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.
Where you live is next up on the list of factors used by insurers. If you live in the city you will pay more for their insurance than your neighbors in more rural areas. And 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.
The type of car you drive is also considered when determining auto insurance rates. You may want to check with your insurance company to make sure that your vehicle did not make the top 10 vehicles that thieves like to steal. You might want to do the same if you are shopping for a new vehicle as well. Any cars on this list will be riskier to insure than those not on it.
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.
Something else you probably never thought about 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.
Your yearly mileage also plays a big part in how much you will pay for your insurance premiums. 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.
See which of these factors apply to you and make any adjustments that you can and you may be able to shave a few bucks off your premium next time you renew your policy.
