Auto insurance companies consider different factors when determining what you will pay as premium for your auto insurance. Understanding these factors will enable you come to terms with your auto insurance deal and may even help you make decisions that could lower your premium rates.
The following are some factors that determines your car insurance rates.
• Age of driver
When it comes to auto insurance, statistics shows that drivers that are under the age of 25 years are at greater risk of being in an accident than those over 25 years of age therefore young drivers are considered higher risk and hence charged higher premiums. Ages 50-65 are considered to be the safest drivers, getting auto insurance when you are above 65 is a tough call so get a driver.
• Age and type of vehicle
The age of the vehicle is also figured into the calculation of your auto insurance premium. It’s more likely that the newer the car the more expensive it’s cost of insurance also a new car model is typically more expensive to insure. In the same vain, the cheaper the car the cheaper it’s insurance premium.
• Driving history
Drivers with safe driving history are usually granted more perks than unsafe drivers. A driver that has a driving history of speeding tickets, accidents and other traffic violations is generally considered to be at high risk. These violations portrays you as a not too careful driver and will likely mean a higher premium.
• Statistics of the driver
Marital status, sex, location, credit profile, and level of education are some of the statistics that may effect auto insurance rates and availability. Married drivers are considered to be less of risk than unmarried drivers and therefore will pay less than single drivers with identical records. those with high level of education and solid credit rating are often considered to be more responsible and hence a lower risk. Women are statistically safer drivers , but the trend is changing as more female drivers get on the road. Certain geographic locations are also recognized as more or less dangerous and can affect auto insurance. Folks living in areas with little or no traffic are likely to spend less on their insurance than those living in congested cities owing to the fact that areas with lot of traffic invariably get more accidents. Neighbourhoods with high crime rates can result in higher premium rates for your auto insurance.
