Statistics Matter in your Car Insurance Rate


There are many factors to consider in determining your car insurance rate such as your age, marital status, sex, and occupation. But one of the least understood is the power of statistics in determining your rate of your insurance.

Statistics show pattern that help insurance companies decide on which group should be given a higher or lower rate depending on the risk level. A group with a high accident rate is considered as high risk therefore, they have to pay higher premium.

Women are benefiting in lower insurance premium because of the numerical figures presented in statistics. They are better drivers than men because they have been involved in fewer accidents-mostly minor accidents. This is why insurance companies charged them lower because there is no risk involved. Why? Even though they got involved in accidents and file for claims, the insurance company will still gain much because the amount of claims will never surpass the amount of profits.

Low cost car insurance policies have been designed for women drivers in that regard. Blame it to statistics; women are enjoying lower rates than men.

On the other hand, young and adult male drivers are involved in most of the major road accidents. Because of this, they have to pay higher premiums. The situation of women is reversed when it comes to males.

Statistics also show that married couples tend to have less accidents and claims. If you are single then you do not have the privilege of getting lower rates because of that.

The crime rate in your geographical location also determines your insurance premium. If you live in an area with high theft rates with the make and model of your car, then you have to pay higher premium. Why? Because your car is prone to car thieves, vandals and there is a more likelihood that you can be involved in an accident.

Although you belong to a group that is considered as high risk, you can still get affordable insurance. Car insurance companies are competitive entities. You can always find a policy that you want especially now that companies can advertise in the internet. Shop around for policies and compare insurance rates from different companies. The power to choose wisely is literally on the tips of your fingers. In just a few clicks on the keyboard and mouse, you can look for any insurance coverage you want.

Get free auto insurance quotes from different companies through their websites or use the online car insurance calculator to find the policy that fits your budget and needs. Just always put to mind that honesty is the best policy because the rough estimate of your premium is dependent on the data that you provided. Use the available technology for your convenience.

Moreover, belonging into a group that shows higher tendency to be involved in accident or file claims do not mean that you have to bear a higher premium. Maintain a good driving record, and good credit history will earn you the right to have lower insurance rates. Safe driving matters for insurance companies because you are putting them to lower risk.