Delaware – Factors that Affect Auto Insurance Rates


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.

The major factor in how much you are going to pay for your insurance is your driving record. Have you been the cause or a victim of one or more accidents? Do you have a number of moving violations against you? Have you submitted too many claims to your current insurance company? If you can answer yes to any of these questions then you are going to pay more for your insurance because of your actions on the road.

Demographics play another big part in your insurance rates. 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. Higher crime areas present higher risks and result in higher rates.

The 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.

Your credit score has a lot to do with how much you pay for your car insurance. The insurance industry is able to use your credit score to determine your rates, so 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.

And how much you drive – or don’t drive – will be factored into your rates. 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.

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.