20 Factors That Affects Your Auto Insurance Rates
There are several factors that affect your auto insurance rates, some beyond your control while others are changeable traits. Insurance providers make use of the underwriting process to collect applicant’s information and from there assess their risk level and finally quote a premium. Here are 20 factors that providers take into consideration.
1. Age– An applicant’s age is important to providers. Apparently, the younger you are the less responsible you seem, making your premium higher than older more mature applicants.
2. Gender – younger men have higher auto insurance rates than younger women.
3. Driving Record – Providers trace back as far as 5 years on your driving record for any accidents or violations.
4. Type of car– More expensive cars are more costly in repairs, making premiums higher.
5. Age of car – as the car gets older, value goes down and the auto insurance rates follow.
6. Credit Score– they check your credit score as well not only driving records. They believe that low credit scores correlates with high claim history. More reasons to improve you credit score.
7. Marital Status – due to the dependents that they have, they tend to be more responsible in driving causing fewer accidents than single people. Auto insurance rates for couple are lower.
8. Location – there are places that have higher repair cost and more accident-prone than others. This will result to higher auto insurance rates.
9. Claims History – it’s a great factor in your auto insurance rate.
10. Criminal Record – this depends on the crime you have committed.
11. Other insurance – getting your health, life, flood and auto insurance at the same provider will ensure lower auto insurance rates.
12. Mileage – There are such a thing as low mileage discounts.
13. Car Alarm – this will reduce the risk of car theft can lowering future claims. Auto insurance rates on cars with alarm are lower.
14. Occupation – There are some occupations or unemployment for that matter, can cause risk for claims thus increasing auto insurance rates.
15. Education – The more education you have the lower your auto insurance rates are.
16. Distance from work – if you drive a short distance to work, you get lesser premiums because you have lesser chances of accidents.
17. Multiple cars and drivers – having teen drivers increases your premiums. If you are a family of four with 2 cars, the parents can be held as main drivers. However, if another car is added, they will interpret the teens as primary drivers now—auto insurance rates go up on a per vehicle basis.
18. Years of driving experience – the longer you’ve been driving the less you seem risky.
19. Vehicle usage – if the car is used for business, the nature of the business will be considered first to assess your auto insurance rates.
20. Resident student discount – if one of your children goes off to college without a car, you can get a break on your premiums.
These factors mentioned above are the factors that providers consider when approving insurance and how much your auto insurance rates are going to be. Your credit score is certainly controllable, take care of it for it does not only affect your premium on insurances but also for credit card applications.