Summit Insurance Advisors
by on Apr 04, 2017
Car insurance seems simple enough on the surface, but there’s a lot more that goes into determining the cost of your auto insurance policy than you might think. So if you’re wondering what it takes to bring down your rates, here are 6 common factors that help reduce car insurance premiums:
Age and Gender
Women are statistically less likely to get into car accidents than men, which means men tend to automatically pay more when it comes to auto insurance. And age is also a big factor. The older you get, the more likely you are to be involved in an accident, which means your premiums will likely continue to increase with age.
Unmarried people under the age of 25 pay more for car insurance. That’s because, for whatever reason, statistics show that married people under the age of 25 have fewer accidents than unmarried people of the same age. However, the same is not true if you are older. After the age of 25 marriage will not have an influence on your premiums.
Some research has shown that there is a link between having poor credit and being more likely to be involved in a car accident. That’s why many insurance companies check your credit history to help determine the price of your policy. However, this is changing, and some states have actually made it illegal for insurance companies to use your credit history as a factor in the insurance buying process, which is welcome news to people with bad or no credit.
If you have a gap in your insurance coverage history, you might be looking at higher rates when you decide you need insurance again. The same goes for sub-par coverage. If you had a policy that provided less than the recommended amount of coverage, your insurance company might increase your premiums when you choose renew.
Type of Car
There are a lot of factors that insurance companies use to determine the risk factors associated with your car. The biggest ones are safety rating, size and age. The better the safety rating on your vehicle, the cheaper your insurance premiums will be. Older cares demand higher premiums because the cost of repairing an older model are significantly greater, meaning your old car is more likely to be ‘totaled’ in an accident than a new one. And when it comes to the size of your car, the bigger the bettr. Large cars are less likely to sustain serious damage in an accident than smaller models, so the bigger the car, the cheaper the insurance (although large cars tend to guzzle more gas, so the tradeoff might not be worth it).
Chances of Auto Theft
Car thieves know exactly which models are the easiest to steal, and insurance companies do too. So if your car is on or near the top 10 most-stolen list, get ready to pay higher premiums. However, you can help counteract this by installing a good alarm and other anti-theft features.
Your garaging address is the zip code in which your car is parked most of the time, and in some cases it can make an impact on your insurance rates. For instance, if you live in a quiet suburb, or a small town, your rates might be lower because there is less of a chance that your car will be broken into or vandalized. On the other hand, if you live in the middle of a crowded city, the chances of damage go up, and your rates might follow suit.
So while there’s not much you can do about your age and relationship status, when it comes to things like credit score, anti-theft features and the type of car you drive, some small changes could make a big difference when it comes to your insurance payments. Talk to an auto-insurance professional today, to see what you can do to find an affordable policy that works for you.
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