Factors That Affect Car Insurance Rates

Age is a key factor in determining car insurance rates. Compared to drivers in a similar age bracket, younger drivers have higher rates, while those over 75 have higher rates than those below the age of 25. According to data from the National Association of Insurance Commissioners, nine of the largest private passenger auto insurers in the country charged average annual rates. However, age and gender are not the only factors in determining car insurance rates. auto insurance quotes ky

Another factor in car insurance rates is the area you live in. Insurance companies look at several factors, such as the type of car you drive, where you live, and what kinds of people live there. In California, the zip code and street address of a person’s home have a 91% impact on insurance premiums. Big cities have more accidents and more property crime. Rural areas are less congested and have lower crime rates.

Insurance rates can vary widely by state. Drivers in New Hampshire, for instance, are not required to carry car insurance. However, they are still responsible for paying for damages incurred by other drivers. Despite the fact that car insurance is regulated at the state level, rates vary by state. Drivers in Michigan are required to carry personal injury protection insurance (PIP) coverage, which covers unlimited medical expenses for the driver’s and passengers in the event of an accident. Because of these factors, insurance companies raise their rates to offset the costs.

After a driving accident, rates can increase by 75 percent or more. In most cases, a DUI will increase your rates for three to ten years. However, some companies may charge a down payment before you begin your policy. If you have a DUI, you should compare your car insurance rates based on the average rates of drivers who have an accident on their record. When comparing car insurance quotes after three or five years, you should look for an insurance company that is willing to offer you a lower price.

One way to lower the overall cost of your car insurance policy is by raising your deductible. A $500 deductible is often enough for most people. But, it can be up to $2,500 for some drivers. Additionally, try and improve your credit score and maintain a low credit utilization ratio. These two steps will help you reduce your car insurance rates without sacrificing coverage. You may even qualify for discounts if you pay your bills on time.

While rates for car insurance for poor drivers vary across the country, the rates for these drivers are largely based on your credit score. In some states, credit score may not be used to determine insurance rates. Other states have laws against the use of credit scores in setting rates. In North Carolina, poor credit drivers are charged 36% higher than good credit drivers. In certain states, this disparity translates to a higher premium for poorer drivers.