Premium calculations are getting more and more sophisticated every year thanks to programming capabilities that can handle large data. Companies are tweaking them to find the best indicators of risk. So, you should pay attention to see what is important now especially if you haven’t considered it for a while. Here are some of these indicators and how they affect your rates.
Where You Live: Most quote forms start with a zip code entry. There are several reasons for it. The first one is to determine which state lows apply to you. Each state in the US has own insurance rules and regulations that will affect the premium charged.
Second reason is that auto crimes, traffic and accident rates in your immediate area can save you or cost extra money when you are insuring a vehicle. You are likely to drive mostly around your home and it is parked there overnight as well. That is why your locality is important and taken into account.
Credit History: This has been a controversial subject for a long time and finally it is widely accepted that how you handle money is an indicator of how likely you are to submit a claim. This could affect your costs as much as twenty five percent and therefore deserves extra attention. Keep your credit score high and get low premium charges.
Yearly Mileage: When you are not driving a lot you have a less chance of meeting an accident. Companies offer around ten percent savings to drivers who cover less than 7,500 miles a year. In the same way, you are expected to pay more if you drive over 18,000 miles a year.
What You Do: Your profession can put you in a better standing with someone you just met. People pay attention to what you do for living. This is no different when you are getting car insurance quotes. A few companies offer special rates to certain professions like engineers, nurses and lecturers. You should check if your work qualifies you for savings.
Marital Status: Companies like married people as they believe it is a sign of responsibility, settling down and wanting to be a family. You don’t have to marry to lower vehicle insurance costs but you should ask for discounts if you are already married.
Type of Car You Drive: Some automobiles are cheaper to insure than others. And some of them are especially expensive. For example, you should forget about buying a sports car for your teenage son unless you are rich enough not to bother with how much premiums would cost you.
Generally, a safer family sedan is cheap to insure compared to many other models. Cars can be expensive to insure because they are stolen often, too small to protect its passengers in case of accidents, sporty, SUV and modified. You should get a quote before you buy a car to make sure it is not expensive to insure.
Age: This is an obvious and well-known one. Almost everybody knows that teenage drivers get charged a small fortune to be insured. Tendencies towards taking excessive risk coupled with lack of experience can explain why this is the case. They cause a lot more accidents compared to mature drivers.
Unfortunately, the cycle is reversed when you go over the age of seventy. Older drivers are considered high risk as well for many reasons. One of the main one is that their reflexes are not as sharp as they used to be and this reduces their ability to see the dangers and get out of it in time.
Gender: Let’s state the obvious and get out of this argument. Ladies usually get lower rates compared to gentlemen of similar age and driving history. Companies discovered that female drivers get into fewer accidents and they reward them with better quotations for this reason.
Claim History: This is one of the biggest savings you can get and therefore required attention. It is only fair that you get offered affordable auto insurance policies when you are not making claims. Having at least three years of no claim history will qualify you between twenty to thirty percent discounts.
Driving History: You cannot expect to be offered a good deal when you keep picking traffic violation tickets right, left and center. All these tickets will show on your DMV records. In simple terms, they are indications of how you are driving. Not respecting the rules and regulations of the road spells trouble and you should know that by now.
Nobody said that it was easy to get cheaper automobile insurance premiums. But it is more about knowing the discounts you qualify and making sure that you get them. Remember that every firm has their unique quote system. If you have a good credit score you don’t want to find a company that don’t care about it. You want to find a company that gives large discounts to drivers with good credit.