Experts Remind Motorists of Insurance Factors


Auto insurance specialists are reminding car owners and drivers about the various factors often considered by insurance providers when determining rates. Experts say that many motorists overlook the importance of knowing and understanding these factors, adding that insurers assess risks based on them. Analysts also agree that one of the best ways to slash insurance costs would be for policyholders to know how to maximize their knowledge of factors affecting premiums.

Experts Remind Motorists of Insurance FactorsA primary consideration would be the age of the car owner. Younger, inexperienced motorists are generally charged higher insurance premiums. Because they lack driving experience and are often considered less mature than adult drivers, motorists below the age of 25 usually have to pay more for insurance. Drivers over the age of 65, on the other hand, are also considered high risk motorists. These car owners can suffer from diminished coordination skills and their senses may not be as sharp as before, making them more prone to accidents.

Insurance providers also consider women safer drivers than men. Recent studies have also found that female drivers pay more attention to road signs and drive more cautiously than their male counterparts. Traditionally, women car owner enjoy lower insurance premiums than men.

In most states, particularly in congested urban centers, the policyholders’ address plays a crucial role. Most insurance providers also take into consideration crime incidents like car theft and vandalism in a particular area to assess the risk of insuring vehicles. High rates of car theft or vandalism can mean expensive insurance for car owners living in these areas.

Some studies have also discovered that married policyholders drive safer than singles. The addition of children also improves their safety ratings significantly, eventually leading to lower rates.

Insurers also take note of the types of cars that policyholders use. Expensive vehicles are naturally more expensive to insure because of costly parts and services. The availability of replacement parts and repair services also affect insurance premiums greatly.

Most providers also give lower rates to car owners who achieve higher educational status. Insurers often cite a greater sense of responsibility from motorists who finish college or achieve higher education. The motorists’ occupation can also affect premiums considerably. People who spend more time on the road are more likely to get in an accident. Because of these, real estate agents and journalists can find themselves paying for more insurance.

Lastly, some states allow insurers to assess their policyholders’ credit ratings to determine insurance rates. The car owner’s financial capability to pay is often used as a primary basis for determining premiums.