Anyone looking to purchase car insurance will know that there are many factors that can affect the cost of your insurance. You might not know the various risk factors that underwriters consider when determining how much car insurance to purchase. Let’s look at some of these factors.
Gender and age
Auto insurance rates are determined by your age and gender. According to the National Association of Insurance Companies, statistically speaking, women are more likely to be involved in an accident than men. High-risk drivers are also young drivers under 25 years old. Premium rates for older women are typically lower. However, rates for younger male drivers will be higher.
Make and model of the car
Insurance companies tend to charge higher premiums to cars that are classified as intermediate-performance, high-performance, sports vehicles and rear-engine models. Insurance companies also consider the installation of anti-theft and security devices when deciding on your premiums. If an insurer can see that you are taking extra measures to ensure safety, then your premium rates may be reduced.
The simple fact is that the more you drive your car, you will pay less for insurance. You are less likely to get in an accident if you drive less frequently. Insurance providers offer lower premium rates and discounts for drivers who drive less.
According to auto insurers, married people are more responsible and cautious than single drivers. It turns out that married couples get lower premium rates than those who are not married, while people who are unmarried tend to pay higher rates.
People with good credit scores tend to pay their bills on time and promptly, whereas people with bad credit score are more likely to do so. A poor credit score can lead to higher premiums. However, a good credit score may result in lower premiums.
Wherever you live
Your premium costs will be affected by where you live. Rates will be higher in areas with high accident rates, claims filed, theft, vandalism, flood, and disaster prone zones, for example. Don’t be surprised if premium rates are slightly higher that you anticipated.
It might be difficult to understand car insurance. There is so much to learn! There’s always a place to start. You’ll be able to anticipate what might affect your rates when you shop for rates that are good.