While auto insurance lenders advertise general rates online, they have specific rates or different people depending on several factors. Each lender uses their own rating method to determine the best insurance premium rates for an individual. People with less risky rating factors get cheaper car insurance policies. Some factors have a relatively large impact on the car insurance cost.
Here are some common factors that affect your auto insurance rates
Age – this is a very hue factor especially for the younger drivers. There is a huge cost gap between the younger and older people. Younger people pay the most expensive car insurance rates while older people pay way less.
Your driving history and driving experience– this should be straight forward to anyone. Your driving history tells a lot about how you operate on the road. People with a clean record will get better insurance rates than ones with ticket and a rough driving record. Violations, reckless charges and tickets inflate the cost of your premiums.
The experience is a simple rating factor, the more experience you have had on the road the less the chances of causing any accidents and the better the chances of getting a lower rate on your insurance premium.
Credit score- just like other types of insurance policies, if you have a high credit score you have a higher chance of getting better auto insurance rates. Some insurance providers refuse to work with people who have low credit scores because they have trouble making all the payments on time due to a huge debt weighing down on their salary.
Your gender- this is a less known risk factor. Specialists suggest that your gender impacts you’re driving. Males have a high insurance rate than females in most states because they are riskier while on the road.
Your history on auto insurance – auto insurance history plays a huge part on your insurance rates. If you have a clean record and made payments on time with very few claims then you are more likely going to qualify for an insurance coverage with low rates.
The history of your insurance claims – lenders will check your auto insurance history before they settle on a rate. Insurance company see long claim history as a red flag for anyone. This means you are less likely going to qualify for a low insurance rates not to mention the auto insurance policy itself when you have a long history of claims.
The coverage level- It should be common knowledge that the more coverage you have on your vehicle, the more expensive the rates will be. Because you carry more coverage, the insurance company is obligated to give a bigger pay-out which explains the high insurance rates.
The type of vehicle – an insurance on a brand new, expensive car will cost you more than an insurance on a used vehicle made 10 years ago. The insurance companies charge you more to cover potential costs on comprehensive and collision coverage.
Through several discount options, you can get a lower interest rate on your insurance coverage as long as you have a good credit, driving history and do not have a long list of insurance claims.