Five ignored factors that affect insurance rates


A lot of people try their best to negotiate for the best insurance rates in town. However, quite a few car owners ignore factors that could affect their insurance rates in a massive way. A holistic approach and some smart thinking could ensure that you get a better auto insurance rate compared to others with similar vehicles.

The car you bring home

Very few car owners correlate the cost of their car with the insurance premium they are going to pay. However, if keeping your insurance premium is one of your priorities, especially with other costs like kids’ education and house mortgage, you need to start thinking before you get the car from the showroom. An expensive car, with spare parts that are difficult to find, will increase your insurance premium cost too. Cars which cost less in terms of service and maintenance as well as damage repairs will often get you better insurance premiums. Cars which come with seat belts, air bags, navigation alerts etc. will also attract lower insurance premium rates.

Amount of driving you do

Most people wouldn’t think about insurance from day to day and only rush to shop around or renew the old policy on the last day. However, car pooling from time to time and using public transportation, especially if your office is far away will save you a lot when you are finally looking to change your policy. Similarly, if you frequently use your own car for out-of-town rides or weekend getaways, your mileage and insurance premium will automatically shoot up.

The claims you make

No one stops you from making an insurance claim to repair the small dent on your car, caused by a minor clash. However, most people fail to recognise that although your accidents are not tracked or recorded, your claims are certainly archived. Every time you make a claim, you are letting the auto insurance provider know that you have been in an accident. Insurance providers, give the best rates to those customers who make the least claims or are least likely to make claims. Hence if it is a minor cost, the economical option would be to get it repaired yourself, instead of claiming for coverage and paying higher premiums later.

Your grades and your credit history

Students seldom consider their grades important as far as auto insurance is concerned. But auto insurance providers are increasingly looking at other factors to deduce your personality and how trustworthy you are to drive safe on the roads. Therefore, better grades can get your better auto insurance rates. The same logic can be extended for your credit history as well. If you are responsible in paying your bills on time and managing your finances decently, you are considered a safer bet while driving too.

The roads and the weather

Sometimes there are things that are out of your control. If you drive in a place known for bad roads, bad weather or a large number of cars, your insurance costs will automatically go up.