Many people assume that car insurance rates are set by states and companies and there is no point in shopping around or negotiating prices. However, that is never the case when it comes to finding the best deals on auto insurance. Most folks in Massachusetts would be surprised to find that the premiums they pay on their vehicles are significantly different from their neighbor down the street. This article will explain some of the factors that affect car insurance rates in Massachusetts so you can be a savvier shopper for your own insurance policy.
The Driver
The holder of the car insurance policy has a lot to do with the amount of premiums he pays. For example, younger men tend to pay much higher rates than younger women, because they are seen as a greater risk in terms of moving violations and accidents. By the same token, older women generally have higher premiums than older men. Another factor affecting your premiums is your driving record, which is probably a no-brainer for most insurance shoppers. However, did you know your credit history can also impact how much you pay for coverage? Those with stellar credit are also seen as lower risk drivers on the road. Students who are making top grades are also seen as a lower risk for the same reason.
The Car
Cars differ greatly in terms of risk factors in the eyes of insurance companies. Statistically, a fire engine red corvette is much more likely to incur a moving violation than a grey family sedan. By the same token, a fancy, foreign sports car will cost a whole lot more to repair after an accident, jacking up insurance premiums on these models as well. On the other hand, cars that include important safety features like extra air bags and anti-lock brakes will tend to bring insurance costs down, as will vehicles with anti-theft devices installed.
The Business
Like any other business, insurance companies want to land you as a customer, and they want to keep you over the long term. That’s why these companies will offer discounts for multiple policies. You can get a better price if you tack on an extra vehicle or your homeowner’s insurance with the same company. Some insurance companies will also offer discounts to long time customers to reward them for their loyalty and business. However, companies may not offer these savings unless you ask, so always ask if you want to get the best rate possible.
Shopping for car insurance has become a little cheaper, thanks to the many discounts offered by insurance companies today. By knowing where to look and what to ask, drivers can save a significant amount on their policies every single year.
