Top Factors That Affect Car Insurance Costs

No insurance policy is the same with another. Insurance companies use a plethora of factors, to determine one insurance policy that might suit you. Some of these factors are in our control, and we can improve them, while others are not. On our website, you can get cheap car insurance quotes, and see what policy satisfy your needs.

Out of all the factors car insurance companies use to calculate policies, these have the most impact on the policy premium:

car insurance costs
  • Driver’s age. Statistics show that younger drivers get involved in more accidents drivers that are in their 40s. Teen drivers, especially, have to pay higher premiums. Not only teen drivers get involved in accidents more often, but with no driving history and a high percentage of claim history, make the insurers to place them in a high-risk category. Senior citizens that are in their 70s or 80s, also pay higher insurance rates based on their age. As they get old, drivers reflexes weaken, hearing and eyesight begin to fade, and age-related disease and medication can influence their driving abilities. Not only that but as we get older, the human body gets more fragile and in case of an accident, and older driver would require more medical care.
  • Credit score. Most states, except California, Hawaii and Massachusetts, allow insurance companies to look at the driver’s credit score. Insurance companies claim they found a correlation between the credit score and the possibility of someone to fil a claim. The car insurance companies will regularly charge more the drivers with poor credit score, while the ones that have good and excellent credit score will receive lower insurance rates.
  • Driving history. If you are involved in accidents, you received many tickets, or you made previous insurance claims, expect to see an increase in the rates you pay for the car insurance. In some cases, if your driving record is bad enough, most insurance companies will refuse to give you any insurance. However, if your driving record is clean, and you haven’t received even a parking ticket in the past three years, you can qualify for a good driver discount.
  • Where you live. The majority of car accidents happen close to home. If you live in a densely populated neighborhood, with more cars, you are more likely to suffer a car accident, vandalism or theft. If you happen to live in one of these areas, it is recommended to keep your car in a garage when you are not using it.
  • The car you drive. Newer, more expensive models cost more to insure. However, those are not the only factors an insurer takes into consideration regarding the vehicle you drive. An insurer will ask about car make, model, car type, year of production, installed safety features, condition, etc. Some cars are cheaper to insure than others. In some cases, insurers will refuse to offer a policy to drivers that own certain cars. Costly luxury sports car or extremely customized cars are difficult to insure, and regularly will need a specialized insurer.

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