Find out what influences your car insurance rates.
Just as no two people are alike, no two insurance quotes are identical. Insurance policies have to be personalized because no two drivers are the same, and therefore a ‘one-policy-fits-all’ will not suit everyone. A car insurance company will determine the cost based on a number of factors, some of the car itself and the rest are the details about the driver. In short, the riskier you and your vehicle are on the road, the higher your car insurance rates.
Here are the major factors that determine most of your auto coverage cost:
Where you live and park
If you regularly park your car in a zip code notorious for auto theft, you could see higher insurance quotes, as opposed to garaging it elsewhere. By parking your car in a dangerous neighborhood increases the chances of theft and vandalism – meaning that your risk for filing a claim is that much higher. While you can’t always change where you live, you can park the vehicle in a closed garage rather than open streets to lower your risk.
How old you are
Age makes a huge difference in insurance costs, especially when you’re younger than 25. Those in their youth are deemed a costlier group to insure as they lack experience and are responsible for a higher number of damages and accidents than that of a 40-year-old who has been driving for 20 years. Note that once you enter your senior phase (65+), insurers start factoring in things like reflex ability, and rates raise to reflect this.
Your past driving record
If your record is rife with claims, accidents, and speeding tickets, you can automatically expect to pay more for your insurance than someone who has a clean slate. Those who have received a ticket or been at-fault for an accident face higher premiums as they are riskier to insure. Drivers convicted of a DUI could see their rates increase by as much as 36 percent.
The more you drive your car, the more likely you are to get into an accident. Insurers will use your annual mileage to determine your risk of a traffic violation or collision. If you don’t drive many miles a year or if your daily commute is less than 10 miles one way, you could enjoy a low mileage discount.
The make, model, and age of the car that you drive significantly impacts your auto insurance. A moderate car with safety features may be eligible for lower premiums and discounts, whereas older cars that are likely to break down or be stolen could face higher costs.