Eight Critical Parameters influencing auto insurance rates


Auto insurance is an amount that has to be paid for our own benefit. In many countries it has also been mandatory. Just like always, we will find people trying to escape from doing so which may be punishable and unaccepted behavior. Instead, what one could do is to find out exactly what are the factors that influence the premium amount paid and see if they can keep it to a minimum.

Simple as it may sound; this would require a little effort from your end but is one of the safest ways you can make sure you are benefited. While some factors are those that we can control, there are others that we cannot. We can try to work around factors that seem to be under our control. The factors that play a major role in influencing our interest rates are:

Age: Statistics reveals that it is the relatively younger crowd, the crowd aged below 25 who are more prone to accidents. This could be partially because of their lack of experience and also because of a slightly playful nature they tend to have. Hence this age group has no option but to pay a relatively higher insurance amount.

Gender: Statistics also reveals that the gender matters. It says that women drivers are more cautious while driving and tend to cause lesser accidents. Hence they stand to gain when it comes to the insurance amount they have to pay.

Marital status: The mere fact that you are married will ensure you pay a relatively lesser insurance amount.

Vehicle type: If you love luxury and want your vehicle to define the same, just take care. That luxury may come with an extra cost. Many a times, high range cars attract a higher insurance rate and hence will burn a hole in your pocket.

Occupation: Insurance companies have spent quite some time in trying to find the relationship between the occupation and the frequency of accidents. It is surprising that they attribute a higher risk to certain professionals compared to the rest. Though disappointing, one must accept that the occupation of a person tends to affect the insurance rates too!

Credit Rating: Your credit history speaks a lot about your spending habits and also on how well you can manage your finances. Maintaining a good credit history comes with many advantages, one of them being the lower insurance rates that you will get to pay. Your credit history will help the insurance company place their trust in you and you will surely pay much lesser in return.

Theft protection measures: No matter which company we approach for the insurance, at the end of the day, our vehicle is our responsibility. It is on us to ensure adequate arrangements are made and the necessary devices are installed so it is out of reach of the thieves. If this is done, your insurance rates are sure to drop down drastically. It is a simple step that will save you sleepless nights both due to fear of thieves and the insurance amounts that will burden you.

Many cars, one company: People who own multiple cars can ensure they get good insurance rates by simply opting to get all their cars insured by the same company. This way, the company builds a certain level of confidence on the customer. They are sure to offer a minimum of 10% – 20% discount on the insurance of the cars. The insurance company and the car owner together benefit from this arrangement.