Car insurance rates depend on several factors, and understanding your rate can help you determine whether you are getting the best deal available. Here are some of the criteria your auto insurance rate is based upon; this will give you a better idea of the factors determining your rate and what you can do to get the best rate possible.
Age And Experience- These two factors can significantly influence the rates you will be paying for your auto insurance. It has been shown that young drivers are involved in more accidents than more mature drivers. Experience has also been shown to be a factor in accident rates. In most cases, however, an older person who is a new driver will have lower rates than a younger new driver.
Location- Where you live also affects the auto insurance rates you will pay. Areas with more traffic, higher accident rates, and more dangerous weather conditions are seen as more significant risks, and as a result, the drivers in these locations are forced to pay higher rates.
Type Of Vehicle You Drive- Several factors related to the kind of vehicle you drive will influence your auto insurance rates. Newer cars cost more to repair and replace, and therefore you will pay higher rates to insure a newer vehicle. The make and model of your car, and even the color, can affect your premiums.
Credit Score- While it may not seem obvious or even fair that those with lower credit scores should be considered higher-risk drivers, your credit score affects your insurance rates.
If you are concerned with the rates you pay for your auto insurance, it is always a good idea to shop around, even if you’re not renewing for a while. It will give you a better idea of whether your rates are fair and help you find an insurance company that can offer you a better deal once your renewal date has come up.
Don Westerfeld has been active in the field of Insurance and Financial Planning since 1997. Don grew up in Indiana later moving to Lakeland Florida where he continues to reside with his wife and children. When he’s not in the office you can find him enjoying the great outdoors. He has served on several charitable business and non-profit organizations and continues to provide guidance, advice and support to local charities.
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