There are many factors that car insurance companies take into account when figuring out the rates they charge their customers. Some things you really have little to no control over, but there are some things that are factored in when determining your car insurance rates that just might surprise you.
One of the major factors in how much you are going to pay for your insurance is your driving record. If you have put through a lot of claims in the past, have been at fault in more than one accident and or have a number of traffic violations, you are going to pay more for your insurance coverage.
A married woman could pay less for her insurance than an unmarried man because they take into consideration the risk factors of each class of driver. The drivers who are known to pay the most for their insurance coverage are teenage boys based on annual driving records. And if you live in the city you will pay more than your neighbors in the suburbs. It is no surprise that areas that are considered high crime areas present a bigger risk to insurance companies.
And what type of car you drive is also factored into your rates. Someone who drives a little red convertible is certainly going to pay more than another person who drives a medium compact 4-door sedan. But the good news is more and more new cars have factory installed safety features that make insuring a new vehicle sometimes less expensive than an older one. Passenger side airbags, keyless entry and pre-installed alarm systems on newer vehicles cut down on the liability and in the end can cut down on the cost to insure them.
Insurance companies are now able to use your credit score to determine your rates. If your credit score is good, you’re safe. If you are having financial problems, check your credit score and see if there are any errors on it. If there aren’t then set up a plan to pay your bills on time and your score could improve in as little as six months time.
The amount of time you spend on the road is another factor insurance companies use to determine your rates. The more time you spend on the road the more at risk you are to insure. Someone who is on the road commuting to work two hours a day is going to pay more to insure their car than someone who works from home and uses their vehicle mostly for leisure.
These are just a few of the things that make a difference in how much or how little you pay for your coverage. It is up to you to take into account the things you can do to reduce your rates – drive safely, keep your credit record clean, and let your insurance agent know if your driving times have been reduced. Every little bit helps and altogether they make a difference on how much or how little you will pay for your coverage.