You might be aware of some of them but there are a number of factors that car insurance companies take into account when figuring out the rates they charge their customers. There are a few things that you really don’t have any control over, but there are some things that are factored in when determining your car insurance rates that just might surprise you.
How much you are going to pay for your insurance is usually determined by your driving record. Have you been the cause or a victim of one or more accidents? Do you have a number of moving violations against you? Have you submitted too many claims to your current insurance company? If you can answer yes to any of these questions then you are going to pay more for your insurance because of your actions on the road.
Your age group, where you live and where you keep your car at night are all things that insurance companies take into account when calculating your rates. A married woman could pay less for her insurance than an unmarried man because they take into consideration the risk factors of each class of driver. And if you live in the city you will pay more than your neighbors in the suburbs. Higher crime areas present higher risks and result in higher rates. Companies will even charge more if you park your car on the street overnight or keep it in your garage.
What type of car you drive is also factored into your rates. Someone who drives a little red convertible is certainly going to pay more than another person who drives a medium compact 4-door sedan. But the good news is more and more new cars have factory installed safety features that make insuring a new vehicle sometimes less expensive than an older one. Passenger side airbags, keyless entry and pre-installed alarm systems on newer vehicles cut down on the liability and in the end can cut down on the cost to insure them.
The insurance industry is able to use your credit score to determine your rates, so if your credit score is good, you’re safe. 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.
If you are an up and coming executive you are going to pay more for your car insurance than someone who has a home based business. The more time that you spend on the road, the more of a risk you pose to the insurance companies. In fact, some carriers give discounts if you are retired.
Knowing what you are up against is half the battle. Take into account the things you can do to reduce your rates – drive safely, keep your credit record clean, and let your insurance agent know if your driving times have been reduced. Every little bit helps and altogether they make a difference on how much or how little you will pay for your coverage.