When you apply for auto insurance in Hawaii, the insurance company considers several factors related to you and the risks associated with them to decide on the insurance rates. If you understand these factors that affect your insurance rates in Hawaii, you would be able to save on your insurance premium payments. The most important factors that the Hawaii insurance companies look into when you apply for auto insurance are listed hereunder.
- The make and model of the vehicle/s
- The age of the vehicle/s
- The age of the driver
- Gender and marital status of the driver and other members
- The driving record of the applicant and other household members listed in the application
- The geographical area of the applicant
- The type of coverages selected for auto insurance
Each factor in the above list carries a certain weight in the computation of the insurance company when your auto insurance quote is given to you. You would not be able to change certain factors. On the other hand, certain factors could be modified by you to your advantage for obtaining a lower auto insurance premium quote. A brief analysis of the points and counterpoints is presented below.
If you possess a vehicle that is not very costly, then the maintenance costs, the repair costs after an accident, and the replacement cost if the car is totaled or stolen, would be much lower. On the other hand, sports SUV would result in substantially higher payments in all these departments. Hence, the insurance companies would look pessimistically at such vehicles as higher risk and hike up the premium rates proportionately. Be moderate with your car selection.
Similarly, the age of the vehicles would also be considered. A new vehicle would not require much maintenance but repairs or replacement would be very high. Hence, premium rates would also be higher. An old car might cost you a lot for maintaining it but replacing it when it is stolen or totaled would be much less due to the current market value of the car. Hence, the insurance company would offer lower premium rates.
The age, gender, and marital status of the driving buying the auto insurance and the other members listed in the insurance do matter to the insurance companies. From past statistics, the insurance companies had come to the conclusion that drivers below the age of 25 are reckless and negligent, being a very high risk. Drivers between 25 and 50 are considered moderate risk, while drivers between 50 and 65 are held as least risk. Similarly, women and married persons are considered to be more responsible drivers than single drivers. The insurance company would calculate the auto insurance rates by assessing these factors carefully.
The driving record of the driver and other members would obviously be a major factor that affects the insurance rates. Lesser accidents and violations would fetch more points. The number of coverages like liability, comprehensive, collision, medical, uninsured and underinsured, property damage, and personal injury protection or PIP would decide the insurance rates. A delicate balance between the various coverages would be necessary to obtain better insurance rates.