Factors That Influence Car Insurance The Most
Your car insurance premium is determined after analyzing a long list of factors. Find out which factors influence the insurance cost the most and get a free car insurance quote from our website.
Not only do state minimum requirements and regulations vary greatly, but zip code to zip code within a state can result in a considerable difference in prices or the same policyholder. It is often surprising to a policyholder when they move from a rural area to inner city and they see an increase in their rates. Population density, road conditions, known hazards and other region specific factors determine the insurance cost. Larger cities, especially those with major industries, can sometimes double their population with commuters during the day, and so the accident risk rises even higher.- Driving record is probably the most influential factor. It is rather obvious that a bad driving record will make it difficult to find cheap car insurance. On one hand, a bad record does mean a higher insurance premium, but on the other hand, it does not have to be permanent and there are ways to get those rates down some. Taking a defensive driving course, can help to lower your high-risk premium.
- Type and model of vehicle. Newer vehicles and those with more expensive replacement parts, as well as vehicles with lease or loans attached, will result in higher costs. Same goes for those sporty, racecar style favorites like mustangs and corvettes.
- Coverage lapses. When a car owner/driver allows for a lapse in coverage, the insurers consider this an increased risk. Often, state law mandates that providers alert the Department of Motor Vehicles of a lapse.. This can result in fines, license suspension, or even time in jail. All of this is in addition to a guaranteed increase in your auto premium.
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