What Can Impact Your Auto Insurance
If you are looking for a new car insurance make sure that you
understand first what are the factors affecting your car insurance rates. It is important that you understand
them so that you will know how much you are paying. Knowing what affects your car insurance policy will help
you understand where your money is going.
There are many factors affecting car insurance rates but among all
factors, there are four categories in which car insurance companies place the most weight on. Although car
insurance companies vary slightly in their quotes, these are the four aspects in which you should watch out
First, car insurance companies look at your age and gender.
According to statistics, teenagers are considered to be high risks since they often get involved in car
accidents and males are considered to be more aggressive than females behind the wheel. So if you are a male
teenager or a male adult then most likely, your insurance premiums are higher compared to
Next, car insurance companies will consider the type of car you
are driving. If you are driving an expensive car then you will also have high premiums. Each car is
categorized based on their model, the year they are manufactured, model, accessories and in some cases,
personal modifications. So if you want to save money from paying premiums then choose the type of car you
will be driving. You can’t drive a Chevy Camaro and expect to have lower premiums. So be a wise car owner and
choose a car that will not greatly affect your premium rates.
Another factor that car insurance companies look at is your
demographic location. Each company has a group of statistics on every area in the US. They study these areas
and see whether or not they are safe and if the crime rates are high and will pose as risks for the car
insurance provider. These companies will then rate each area for their risk factor. Those car owners who are
living in an area where claims are high will also expect to pay large amounts for their car insurance
premiums. This is how the car insurance world works.
You driving record/ driving history will also affect your car
insurance rates. If you have negative points from DMV then most likely, your car insurance rates will
increase. If you have a history of DUI, speeding tickets and the likes, car insurance companies will consider
you as high risk and you will be paying expensive premiums. The best way to avoid this kind of charges is to
drive according to traffic rules or take defensive driving classes. These will help lower your premiums and
will also give you credits which will appear on your driving records.
Now that you know what affects your car insurance premiums, be
careful enough and take caution before you buy an insurance policy. If you have bad driving records or if you
live in a high risk area then you now know what to do. It’s just a matter of cleaning your records before you
decide to purchase a policy.