Factors Affecting Your Car Insurance Rates
Car insurance is a variable cost that depends on various factors often pertaining to where you are in life. If you are younger you are most likely going to be paying higher premiums due to your perceived risk factor. A younger person also would not have much of a credit history built up which could normally allow for better rates as well. One benefit younger people may have is that on a whole, their insurance may actually cost less only based on price itself due to insuring an automobile that is worth considerably less than an adult with a good job. Having a $500 car will be less to insure than a $50,000 car.
The value of your vehicle changes over time. As a car ages, the rates start to decrease since your not insuring a vehicle that has as high of a value as it once did. Another issue that comes into play is that owners will often start to forfeit additional insurance expenses such as collision and have a higher initial fee, or premium, in order to have something fixed. A windshield, for example, may be something that you are not willing to replace if it has a couple small dings in it if your car is older so raising the premium to a higher rate may interest you.
While adults generally pay lower insurance prices than the young, this may not be the case if you have a teenager on your policy. Allowing a new driver to be insured with your vehicle adds risk to your car. As a result, the insurance companies will charge a higher rate in order to cover a higher chance of a collision than if just a long term driver with no accidents would have. As a teenager ages and moves out of their parents house, you may want to inform your insurer of recent changes in order to save money.
Your driving record says a lot to an insurance agent. If you have had a poor record including several speeding tickets, accidents and hazardous driving you will end up paying far more than even a new time driver would pay. If you are considered a hazardous driver, you rates can go through the roof. Accidents with today’s modern cars are expensive, if your track record shows you are likely to get into another one, you will be paying a hefty price.
There are several other factors that can influence ones insurance rates. Not all insurance companies will use each factor and some will use certain points more than others. But here some points that will determine ones rates:
– Ones Gender – generally males will be charged more than females as they are associated with a higher rate of accidents.
– Credit Score – ones credit score often indicates how reliable financially one is. If there credit score is in good order this can provide peace of mind to the insurer.
– The Actual Car you Drive – If you own a car that tends to be stolen more than others, it can raise your rates, not to mention if a car is deems to be a sports car or if the make has a history of more repairs than the average car.
– How much you Drive – If you are living a far distance away from your job, you will pay more than if you are only a 5 to 10 minute drive away.
Essentially any statistic that is collected and that your insurance company has assess to can be used to determine your insurance rate. An insurance company has no problem providing insurance in the case of an accident but they need to determine your risk before they can provide a price. Always be sure to inform your insurance provider any information that has changed that could be used to lessen your rates and never try to cheat the system in order to obtain low auto insurance rates. For example if you are driving 30 miles to work each day but you have your rates only indicating 8 miles, you will not be covered and due to the amount of insurance fraud there is, they will often undergo a thorough investigation to determine if you are scamming them.