There are many factors that are taken into consideration by car insurance companies when determining your rates. Some of them are just common sense, but others may take you by surprise. You may want to check with your carrier regarding the following factors to see where their company stands.
You probably already know this one because the first question that your insurance agent is going to ask you is have you had any accidents or tickets in the past three years. Your driving record. is probably the biggest factor as to how much or how little you will be paying for your car insurance.
When an insurance company looks at your driving history they check for the number of accidents you have been involved in, the number of claims you have submitted, no matter how big or small, and if you have any traffic violations. You could be paying for one accident for the next three years through increased premiums. Some insurance carriers have a forgiveness policy and will not raise your premiums if it is your first accident and you have had a clean record in the past.
If you are a male driver between the ages of 16 and 23 you are going to pay more for your car insurance. This group has a four times higher fatality rate than any other drivers on the road. If you are in that age group and get married, your rates will start to go down. The next riskiest group are older drivers, especially 75 years and older.
Make sure that your car didn’t make the list. The list of the cars thieves most like to steal that is. Each year a list comes out with the top 10 cars that thieves love to steal. You may want to check to see if your car made the list, and you definitely should think again if you are looking to buy one that is already on the list. Many of the cars are older and they steal them for parts, some are just easy to steal. But there are newer cars on the list, so be forewarned.
Your credit score is a big factor in how much your insurance company is going to charge you 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. But this is an area that you can improve and see the results in a reduction in your premiums. 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.
Never let your insurance coverage lapse. If you are changing insurance companies make sure that you notify your existing company to let them know so that they do not cancel your policy. A lapse in coverage will follow you for years in increased premiums. And you may even have trouble finding an insurance company who will accept you.
If you drive a lot your premiums are going to be higher as your exposure adds to the risk of insuring your. 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. That’s why some companies give discounts to retirees.