Take a look at the following 6 factors that help auto insurance companies determine the premium you pay:
- The type of car you drive: If the type of car you drive suggests that you could be at higher risk of accident than your counterpart, then your insurance premium will be high.
- A good credit score: If you have a good credit score, then you must get a discounted rate for premiums. There is a direct correlation between your credit score and your filing a claim. This has been proved by studies and insurers and they use this information to assess if you are a risky customer.
- The type of driver you are: If you are a good driver you can evade high priced premiums. However, if you have a bad driving history, too many claims, or too many speeding tickets and the like, you may have to cough up a big amount as insurance premium for your car.
- Your age: If you are an experienced driver and have a good driving history, your premiums will be less compared to what they charge if you have a teenager placed on your auto insurance.
- Your sex: Male drivers are known to be more prone to accidents than female drivers. Female drivers are more cautious when on the road whereas their male counterparts are known to have more accidents and hence more auto insurance claims. Female drivers are careful when they drive and have lesser accidents which result in lesser claims. This is why female drivers have to pay less for insurance compared to male drivers.
- The area you live in: If the area you live in has records of accidents, or car thefts you will be charged more. However, you may get some discounts if you have car safety measures taken. It reflects the fact that you are a responsible driver and that you would also take care of the car when on the road to avoid getting involved in accidents.
Blog Category