Eight Elements That Influence Your Auto Insurance Rate

Posted on Oct 31st 2009, 01:19 am, under Improve Your Auto Insurance Rate

There are many factors that indirectly affect your car insurance rate, and they are all related to the amount of risk the insurance agency will undertake, should you choose a certain policy. When you're shopping around for the best auto insurance price, you must know what the sellers will be taking into account, so you can realistically adjust your expectations.

1. Where you live: If you live in a large city where the traffic volume is much greater, then there's obviously a higher chance of car accidents. Therefore, expect a higher insurance rate.

2. What you drive: Insurance companies have extensive statistics that show which vehicle types are more likely to get into accidents (in fact, even the color of your car influences the chance of collisions). Higher rates are set for owners of more accident-prone vehicles.

3. Your driving record: If you've got a lot of speeding tickets and moving violations in your history, you're a greater risk for the car insurance company.

4. How much you drive: The less time you spend on the road, the better. If you use your car for long daily trips or regular weekend getaways, you're a bigger risk than someone who uses the car only to buy groceries.

5. Your age: Statistics have shown time and again that younger drivers are more accident-prone than older drivers. As a result, the latter can expect more favorable rates from auto insurance companies.

6. Your gender: This factor isn't skewed the way you might think. According to statistics, males under the age of 25 are more likely to be involved in car accidents than young females due to the greater aggressiveness at the wheel. Fortunately for the men, gender as a factor is disregarded if the applicant is over 25 years old.

7. Your marital status: If you're single, you can expect to receive a slightly higher rate from insurers than a married individual.

8. Your record of accident claims: If you've filed a lot of accident claims before, it's highly likely that you'll get a higher rate than someone who has not, since you'll be perceived as a greater risk.