These days, we all complain about the high cost of living. It seems as if anyone who owns and operates a car is faced with a healthy dose of bills to deal with: the cost of buying the car, fuel costs, maintenance and repair costs, and the super BIG, the auto insurance premiums.
If you haven’t already verbalized it, no doubt the obvious question is at the forefront of your mind: Why does auto (read car, truck, motorcycle, RV, etc.) insurance have to be so, so expensive?
The answer to everything related to insurance comes from the industry itself and this is no exception.
“Insurance rates differ from person to person and are based on a few factors,” says a leading specialist who works in the tri-state area and is employed by an independent agency. “It all comes down to how much risk you can pose as a driver.”
Eight factors that can affect your car insurance bill
Some of the things that determine how much you pay for car insurance are listed below.
• What kind of vehicle do you drive?
There is a clear difference between car makes and models when it comes to safety. Also, high-end cars with a higher price tag are more attractive to car thieves and are more expensive to replace; they are also more expensive to repair after an accident.
• Your adress
If you live in a place that has a higher crime rate, your premium will reflect the risk of theft. If your locality has proportionately more car accidents and claims, it will also have an effect on your premium.
• How you use your car
If you use your car to get to and from work or use it for business purposes, you will find that you will incur a higher premium than those who drive only to go to the supermarket or for pleasure trips.
• If you are a good driver
If you’ve never received a driving ticket or been in an accident, you’ll have a lower insurance rate than those with less than impeccable driving records.
• Your claim record
If you’ve filed insurance claims before, especially if they resulted in large payouts, your insurance premium will reflect that. But you can also find a rate increase if you have only filed claims regarding accidents that you are not at fault for.
• How old are you
Young drivers, especially teenage boys, are grouped as riskier drivers because statistics say they exhibit poor driving habits and are involved in and cause far more serious accidents than older drivers. To a lesser degree, people age sixty-five and older may find their insurance rates increase due to age issues that contribute to poorer reflexes, vision problems and more.
• Marital status
Studies show that husbands and wives are not involved in as many crashes as the unmarried.
• How you rate your credit
Although this may not seem fair to some, insurance companies may classify you as a risky driver due to your low credit score.
Talking to an expert specialist employed by an independent insurance agency will help you navigate through the network of insurance policies so that you are presented with the most personalized one at the most competitive price.