When it comes to determining your car insurance rates, there are several factors that come into play. Some of these things are just common sense and then there are other things that you probably never even thought of as being a reason to base your car coverage on. Here are some things that the insurance industry considers when coming up with your premiums.
First up is your driving record. How many accidents you have had, how many claims you have put in and how many traffic violations you have been charged with during a three year period is a big factor in what you will be paying for your car insurance. The more you actually use your insurance, the more it will cost your.
Your age and where you live play a big part in how much you will pay for your car insurance. If you are a married woman, you will pay less than an unmarried man. And if you are a teenage boy you will pay more than just about any group. Teenage male drivers present the biggest risk to auto insurance agencies and they are the cause or involved in the most accidents on the road.
If you live in the city your insurance rates will be higher than residents of the suburbs as insurers calculate the crime factor into your premiums. If you have a home and can keep your car in a garage overnight you will pay less than someone who must park their car on the street.
When choosing your next car you may want to check how your insurance rates will be affected based on the car of your choice. Sporty cars present a bigger risk than more family style vehicles. But on the plus side, auto manufacturers are including more and more factory installed safety features and that may entitle you to safety discounts. Anti-lock brakes, keyless entry, airbags and alarm systems all make your car less of a risk to replace or repair.
One factor that is in your control is your credit score. In the past few years insurance companies have been allowed to use your credit rating to determine your car insurance rates. Check your credit score to see where you stand and to make sure you don’t have any errors on it. Or you may just need to improve your ratings a little by paying on time and maybe even paying a few smaller debts off completely.
The more you drive the more you will pay for your car insurance so if there is any way to cut down on your mileage you could save some money. If you have a car pool at work see if you can get in on it. If there isn’t one, why not start one up yourself. Insurance companies give lower rates to retirees because even though they are older drivers they spend less time on the road.
Take these factors into consideration and make any changes that you can to see how they affect your car insurance rates. If you can drive less, install some safety features on your vehicle and clean up your credit, you may be able to shave a few bucks off your premium next time you renew your policy.