What Determines Car Insurance Rates?
There are several conditions that can affect the premiums for your automobile insurance. Below is a list of the main factors that will determine your car insurance rates.
Driving Record: Your driving record, which contains information on your driving history such as past tickets, points accumulated and traffic infractions can have a significant impact on your car insurance rates. Safe driving and traffic school can help you avoid unnecessary increases in auto insurance rates. If you would like to view your driving record, click here.
Safety Features: Safety features such as anti-lock brakes, airbags and stability control can reduce your auto insurance premiums. Be sure to consider all types of safety features in general when selecting the best type of vehicle.
Credit: Yes, your credit score says a lot about your bill paying habits. Insurance companies are likely to look at your credit rating in determining your car insurance premium.
Location: Insurance rates can vary depending on the area where you are located (where you will be insured). Drivers located in crowded areas, cities with heavy traffic and high collision/claim rates may end up paying more for their insurance.
Age and Gender: If you are under the age of 25, you will most likely have to pay more. Drivers under the age of 25 usually have a poor driving record when compared to older drivers. In addition, men are historically more aggressive, risk-taking drivers than females. So men may have a higher rate as well.
Vehicle: The make, model, price and age of your vehicle can all be factors in determining the cost to insure. If you drive a car that is less expensive to replace and repair, then the insurance you pay may be lower as a result.
There can be other factors such as average mileage, student discounts and marital status that can affect your insurance rates. In the end if you are still unsure, you can always check with your insurance provider to see what may lower your premiums, such as taking a defensive driving course, and shop and compare for different rates.