Seven factors used to determine car insurance rates

Complex insurance forms

Many are still baffled with the formula used in the calculation of car insurance rates. It is a long and complex system that is hard to crack. Nevertheless, analysis of the basic questions asked reveals seven factors, which helps determine the car insurance premium rate you need to pay.

  1. Age – Younger drivers and seniors are more prone to accidents. The former owing it to lack of experience and gullibility while the latter owing it to physical incapacities. Thus, expect higher auto insurance rates for applicants under this bracket.
  2. Gender – Women are generalized as safe drivers; therefore, given more leeway by auto insurance providers.
  3. Marital Status – Married couples are considered more stable drivers in comparison to single men and women; thus, the cheaper car insurance deals.
  4. Geographic Location – The denser the city is the more expensive your car insurance rate would be which is probably due to the higher risks of encountering an accident.
  5. Traffic Violations – As given, more traffic violations on your license will bring you higher insurance premiums. It speaks of itself. It is hard for companies to trust you on the road and the only guarantee they can have is to increase your premium rate.
  6. Vehicle Type – A safe car will be less likely stolen, but a leisure car would mean more expensive repairs if it meets an accident. Therefore, choose a functional vehicle with appropriate safety devices if you want to save on your car insurance bills.
  7. Credit Score – Insurance providers have seen a link between your credit score and your driving insurance security. Therefore, if you have high-risk history with credit agencies, then expect these insurance providers to charge you more.

It is wise to review these details and come clean before you approach an auto insurance provider for your policy needs. It will help you reduce your premiums; thus, provide you more savings in the future.