1. Factors you CAN’T change that impact your auto insurance rates:- Your age - Dick Clark and Sophia Loren notwithstanding, aging is unavoidable. And while you may be a mature-looking teen or a youthful octogenarian, the oldest and the youngest drivers are far more likely to have accidents.
- Gender -Whether it’s the mothering instinct or fewer NASCAR fantasies, women statistically make safer drivers.
- Marital Status -Ok, you can change this, but there have been no reports of people marrying simply to lower their insurance rates.
2. Factors you CAN change that impact your auto insurance rates :
- Geography - Where you live matters. For instance, those living in rural America are far less likely to have a collision or a stolen car than those living in a city. But, sometimes even just moving across the street can change your rate.
- Driving violations - Speeding tickets, running red lights, failure to yield, etc. all count toward your auto insurance rate.
- Your vehicle - If you must have that cherry red Corvette or the Ferrari Testarossa, be prepared to pay for it. Your insurance premiums will be higher.
- Accident claims - While you can’t change the past, keeping your slate clean and free of accidents will hold you in better stead than lots of fender benders.
- Credit rating - That’s right — many insurance companies view having a poor, or even no credit history as suggestive of higher risk.
- Occupation - A little easier said than done. Believe it or not, insurers have found correlation between your occupation and risk. Makes sense that the pizza delivery guy could be a higher risk!
3. Other factors that go into determining premiums:
- Miles driven per year
- Distance to work
- Occupation
- Years of driving experience
- Business use of the vehicle
- Whether or not you currently have auto insurance
- Theft protection devices (often results in discounts)
- Multiple cars and drivers (another opportunity for discounts)
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