What Factors Affect My Car Insurance Policy Or Premium Rate?

By Sharon Gibson Posted in Car Insurance News

Uncontrollable Factors That Affect Your Premium

There are many different factors that can affect how much you pay for car insurance. Some are controllable and others are uncontrollable. The uncontrollable factors include your age and sex. Women in their 30′s and 40′s pay lower insurance rates than men in their teens and 20′s because they are at a lower risk than the males. In general women are considered safer drivers and therefore will usually pay a lower rate than their male counterparts. The difference could amount to as much as 20%. Age also plays a big roll on insurance rates. Car accidents are the number one cause of death for teenagers. Because of this startling statistic, drivers between 16 and 21 pay the most of any age group.

Controllable Factors

There are several controllable factors that car insurance companies considered when determining policy premiums. Your credits score, driving record and even the type of car you drive will affect your premium rate. Surprisingly your credit rating reflects more than your ability or willingness to pay insurance premiums. If also reflects what type of driver you are. This may not seem fair but insurance companies try everything to prevent losing money. If there is even the potential to lose money they will protect themselves by increasing insurance rates. Your driving record is by far the biggest factor in determining your car insurance rate. Insurance companies don’t like to give you money. If you have a bad driving record then the insurance companies consider you an extremely high-risk driver. The type of car you’re are insuring can say a lot about you as a driver and it could mean a massive premium. Cars with a manual transmission are more expensive to insure than cars with an automatic transmission. Insurance companies also look at the cost of replacing the car if your are in an accident. This is assuming you have more than liability insurance on your vehicle.

Ways To Reduce The Premium

Maintaining a good driving record and paying your insurance premium on time are the biggest ways to keep your cost low. If you are purchasing a new car, be mindful of what kind you purchase. If you are aiming for a low rate consider a ”safer” car.

Related posts:

  1. How Do Car Insurance Companies Determine Insurance Rates?
  2. How Can I Lower My Monthly Car Insurance Premium?
  3. Is Car Insurance More Expensive For A Car With A Standard Transmission?
  4. How Do Driving Records Affect My Car Insurance Premium?
  5. Little Known Tips To Getting The Best New Driver Car Insurance Rate

Leave a Reply