Factors that affect car insurance rates
Car insurance is an inevitable requirement for every person owning a vehicle, as drivers must must comply with the minimum state laws. At the same time, it is a need because in case of any accident or damage to the car you won’t feel the pinch in the pocket. So, while searching the different options, have you ever wondered how car insurance rates are determined? Is selecting the lowest quote your main strategy while buying car insurance? How long will you go on accepting the premium blindly? It is time you become aware of the factors that determine car insurance rates.
Insurance companies associate different risks to different cars. So first and foremost, consider the price of the car. If you are planning on buying a new car on credit, your bank might require you to have full coverage to protect the investment until the car is paid off. On the other hand, if you are thinking about ‘hooking up’ your car with performance gadgets and top of the line sound systems, then be prepared for a higher premium bill. Obviously an SUV will make you pay more for insurance than your father’s old jeep. Also if your car type is a favorite with car-thieves, then you will have to bear to pay for higher premiums!
In addition, whether it is fair or not, it is widely accepted and known that young drivers are charged more in comparison to the more experienced and older ones. Yet even young drivers should know a few things which can help lower their insurance rates. If you have a clean driving record, bring it up – although it might not matter a lot! If you are in your early twenties and are married, then do bring it up-front. Married men are considered to be more responsible than their bachelor counter parts. Make sure that you acquire proper drivers training. If you have good driving education then you might be able to save a few dollars. Women might be able to reap the benefit of their gender to get lower rates in comparison to men of the same age. So, do some planning before you call up the insurance agent.
Your credibility and your job both will influence your car insurance rates. If you have a clean credit record and your credit score is high, then there is nothing to worry about. The insurance company would consider you to be a reliable customer to insure who will pay his bills regularly. Unfortunately for some and fortunately for the others, insurance companies carry a lot of bias against certain jobs. For example if you are a pizza delivery guy then you are the type who will always be in a hurry whereas if you are one of those men who wears a tie to their bank-office everyday, then you shall perhaps be charged less.
After considering all these interesting factors do not forget that the most vital factor is where you live. The state minimum requirement for insurance coverage is something which cannot be negotiated. All other factors stated above are negotiable and differs from company to company.