Various Factors That Affect Your Car Insurance Rates

Car Insurance Cooper CityIf you own and drive a car, it’s inevitable that you’re paying a premium to your insurance Company. Considering that various insurance Companies can quote you a good range of premiums, you’re probably curious to know what factors have an effect on your car insurance rate.

While it makes sense that your driving record and car usage play a factor in determining your car insurance rate, they’re undoubtedly not the sole factors insurance Companies take into consideration. Here are the foremost common factors that insurance Companies bear in mind to establish your specific car insurance rate.

Driving Record. Insuring any driver is a risk for car insurance carriers, but particularly drivers with blemishes on their driving record as they represent a higher risk. There’s no formula for predicting the future, however the auto insurance carriers will definitely create an assessment by examining your past driving habits. If you’ve have a history of accidents, speeding tickets or a DUI, you can expect to have a higher car insurance rate.

  1. Wherever you reside will most definitely impact your car insurance rate. Generally, living in a highly populated city is more expensive than a rural area. Urban areas are more heavily inhabited, which suggests there’s additional traffic and greater possibilities of car accidents. City life also means that your car is at an increased risk of being taken – another factor that will increase your car insurance rate.
  2. You may or might not be shocked that your age, gender and legal status might help confirm your car insurance rate. Auto insurance carriers collect statistics to keep track of patterns that allow them to properly identify drivers who are most at risk of being involved during a car accident. In general, women pay less insurance premiums, whereas men – particularly young males below twenty five – tend to pay higher premiums. Once drivers reach twenty five years older or they get married, they’re likely to see a drop in their car insurance rate.

Education.  The auto insurance carriers take this into account in there underwriting practices. The higher your education the more favorable you could be looked at.

Credit History. You most likely already grasp that your credit history comes into play once you’re applying for a brand new Visa card. What most people don’t know is how heavily weighted your credit score is, when insurance Companies populate your insurance rate by giving you and risk score otherwise called insurance score. It’s true – most insurance Companies pull your credit report to assess how responsible you’re and how much of a risk you represent. The lower your credit score, the higher your premium are.

Given that Insurance Companies use a range of things to see an individual’s car insurance rate, premiums will vary wildly from one person to the next. Other factors, such as your demographic profile, that are out of your control, while other factors that you can positively push in your favor is by making an effort to maintain a decent driving record. If you’re thinking about getting car insurance our looking to compare your coverage, before you do anything just ask Mitch at askmitch@monalisainsurance.com.