Prices of insurance policies vary from one insurance company to the other. Your insurance policy rate is also dictated by the features or details you place in your policy. In case you didn’t know, every feature of your auto insurance policy is priced individually. So the more specifications you place in your policy, the more you pay.
However, there are also other factors which contribute to the rate of your auto insurance policy. The type of car you drive is one factor that affects the rate of your insurance policy. If you own an expensive car like a Lamborghini the rate of your insurance policy would definitely cost higher compared to a minivan. This is because the repairs for a Lamborghini is more expensive than the repairs for a minivan and a Lamborghini is more prone to accidents and theft compared to a minivan.
The neighborhood where you live in also affects the rate of our insurance policy. If you live in a neighborhood where there is a high rate of accidents, vandalism and theft, your insurance would surely cost high.
The number of times you drive your car is also another factor. The more you travel using your car, the more chances you get into an auto accident and this means your insurance policy would cost more money. So, if you want to save money, you could just commute from your house to your work and use your car only during vacations or during weekends.
Your age, sex and other basic information are also factors that contribute to the rate of your insurance policy. Based on statistics, licensed teenagers are more prone to accident than licensed adults. That is why teen insurance policies cost more than the insurance policies of adults. Also, males who drive causes more accidents than females, making males have higher insurance policy rate than females.
Finally, your driving record also dictates the rate of your insurance policy. A clean insurance record means you are a safe driver, thus, making your insurance rate lower than others, and a poor driving record says that you are not careful enough, making your insurance policy rate high. However, if you have had a poor driving record in the past, you do not have to be sad about it. Driving records get cleared off every 3 years, so that means you could start over on your driving record fresh every 3 years.
