Factors That Influence How Much You Pay For Car Insurance
Posted on 12. Aug, 2010 by admin in Policy influences
In most cases, if you shop around, you will find the exact same policy at another insurance company for more or less than you are currently playing. What factors influence how much you will pay for your car insurance?
• Driving record
At-fault accidents, not-at-fault accidents, at-fault tickets and not-at-fault tickets all influence the rate you will get on your insurance policy. As unfair at it may seem, regardless of an accident of ticket being your fault your statistics for being involved in an accident will increase and so will your premium.
• Personal Profile
Certain personal factors are going to have an influence on the cost of your policy. A male’s premium will always be higher than a female’s premium. While this may seem sexist and unfair, keep in mind the insurance companies are working off of statistics and statistically speaking, females are involved in less accidents and traffic violations each year than males.
• Continuous Coverage
A person who has had no breaks in their insurance coverage is going to pay considerable less for their policy than a person that has canceled their policy or had their policy canceled on them. Having continuous coverage shows the insurance company two important things; one, you are responsible enough to not drive on the road as an uninsured driver and two, that you had a job or some type of steady income in order to pay for your policy.
• Credit History
First and foremost, your credit history is a reflection of you. Factors that lower your credit score such as defaulting on bills or an eviction from a resident will place you into a high risk pool. Insurance companies view your credit score as a reflection of your level of responsibility, thus those with lower scores are dubbed less responsible. A person’s credit score will also influence the price of their premium because, according to insurance company statistics, individuals with lower credit score file more insurance claims.