7 Factors Impacting Car Insurance You Didn’t Know About
Car insurance can be a fickle friend. Despite the low quotes they promise in advertisements the final cost seems to always be different. This is because car insurance is affected by certain factors that vary from motorists to motorists. You probably already know about some of these like safe driver discounts and variations in coverage, but the truth is they only scratch the surface.
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Everyday details from where you live to your age can impact your monthly premium. This is why savvy drivers often get more than one quote to compare and contrast and study up, so they can use these factors to their advantage; picking the best car insurance quote for their needs. So if you are looking for cheaper auto insurance, here are seven factors that can affect your quote.
PERSONAL INFO
Turns out some things do get better with age and one of them is auto insurance quotes. Basically, the younger you are the higher your auto insurance, and the older you are the more affordable. Insurance companies believe that younger drivers are more of a risk than older motorists so they price accordingly. This is one example of how your personal information affects your quote. Details like gender, marital status, time behind the wheel, and other personal aspects can save or cost you hundreds. So a good idea is to find out what details affect your quote. Remember, with insurance companies it is all about risk. Just look at gender and marital status.
Little known to most is that teenage women fare better than teenage men. This is because data shows that teenage boys are not very good behind the wheel. They take a lot of risks that teenage girls do not. They also have a history of filing more claims than girls do. So insurance companies offer girls better quotes. Marital status also affects quotes because two drivers essentially become one. Historical data has proven that couples tend to share driving duties. This means they file fewer claims than a single person who does all the driving.
TYPE OF VEHICLE
You may love the idea of a cherry sportscar until you get that insurance quote. Many motorists out there actually factor insurance into their choice of vehicle. This is because certain makes and models can actually save you money. Once again it revolves around risk. Two-door sports cars are a bit more dangerous than the family SUV. Number one, you will not drag race in your SUV, and number two, you will not be tempted to show off your engine at every red light. Since people who drive sportscars file more claims their rates and increases are higher. So if you are looking for cheaper auto insurance, then go for an SUV or a nice four-door sedan.
CREDIT
Good credit can open many doors in life and cheap auto insurance is an overlooked window. Insurance companies also look at your credit when factoring your monthly quote. There are actual studies that show individuals with bad credit tend to file more claims. This means that insuring bad credit holders is more expensive than insuring those with good credit. So an overlooked way to shave dollars off your premium is to maintain good credit or fix it if it’s bad.
RESIDENCE
Another overlooked auto insurance factor is a place of residence. Where you live can actually impact the cost of your insurance and the rate of increase. Differences can be seen city to city or state to state. Many cities have problems with crime, weather, bad traffic conditions, etc. Louisiana, for instance, has high insurance rates but then again it gets hit by a hurricane every year. Hurricanes do not just damage buildings they also do a doozy on cars.
Naturally, places with more threatening conditions are accompanied by higher numbers of claims. In response, insurance companies balance the risk by charging more. So doing some homework on where you live can end up saving you some money.
HISTORY
Your personal history can have a significant effect on your car insurance quotes. When an insurance company looks into you they take into account how long you have been driving, your insurance history, and your claims history. These three factors say a lot about what they can expect from you. A person who has years behind the wheel is less of a risk than a rookie.
A person who has a history chocked full of insurance claims is more of a risk than someone who has not filed any. Also, someone who has enjoyed continuous coverage for quite some time is less of a risk than someone with a lack of it. These factors can shave hundreds off overall costs so be careful the trail you leave behind.
RATE OF TRAVEL
A final factor that is overlooked is how far you actually drive. The more driving a person does the larger the risk they will inevitably get in an accident. So if you tend to drive hundreds to thousands of miles per year, then your quote will be higher than someone who drives far less.
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