What factors can change your car insurance quote?
Several factors affect your insurance quotes. This article will help you understand the reasons behind some of the changes in insurance quotes.
If you can understand how insurance companies set their rates, it’s a plus for you. You can save money as you shop car insurance. If your perceived risk is low, you will get better rates for your insurance cover. Here are some other factors that can change the insurance quote on your car.
1) Your age, gender, marital status, education
Young drivers are considered reckless and carefree by insurance companies. Compared to older drivers, they are inexperienced and don’t consider all the traffic rules. So, your age will affect your rates.
Male drivers are not charged the same rates as female drivers. Young males are charged highly, and older females are the ones that get high insurance quotes.
For married people, their rates tend to be lower compared to those that are divorced, separated, single or widowed.
Some companies charge less to people with a college degree. They assume that those who are learned will file fewer claims. Not all companies believe this, so you should shop around for one that suits you.
2) Where you stay and what you do
Top of the list of the factors that affect your insurance is your location. Every state has its rates, and they vary dramatically. If you’re a driver that stays in rural areas, you may end up paying less than the one in the city. There is theft, vandalism, and car crashes in the city are more common.
Your current occupation can affect your cars insurance rates. People with high-paying jobs tend to file more insurance claims, so their rates could be higher. Using occupation to determine your rates has been banned in some states, though.
3) Your credit history
Your credit history is different from your regular insurance score. If you pay your bills on time, it means you have a good credit history. Compared to a driver with a bad history, you will get lower rates for your car.
4) Whether you’re a home owner
If you’re a homeowner and you take multiple policies like auto insurance and homeowners’ insurance with the same company, you might get a discount.
5) Your driving history
Your driving record will follow you wherever you go. If you have traffic tickets for violations, accidents, you will pay more compared to a driver with a clear record.
But you can invest in some equipment to monitor your driving, such as dash cams and black boxes.
6) How much you drive
A high mileage will get you a high insurance rate. The more you are on the road, the easier it is to get into an accident.
7) Where your car is parked
Parking in a garage lowers the risk of your car getting hit or broken into compared to someone who parks on the street.
8) How many years you’ve been driving
Someone who has been driving for years has more experience of the road and traffic rules. If you are the same age as a driver who started driving early, you will get a higher rate than them.
Photo by Toni Tan