These days, we all complain about the high cost of living. It seems as if anyone who owns and operates a car is faced with their fair share of bills to contend with: the cost of buying the car, fuel costs, maintenance and repair costs, and the super BIG one, the auto insurance premiums.
If you haven’t verbalized it yet, the obvious question is undoubtedly underlining your mind: Why does auto insurance (read car, truck, motorcycle, RV, etc.) have to be so, so expensive?
The answer to everything related to insurance comes from the industry itself and this is no exception.
“Insurance rates differ from person to person and are based on a few factors,” says a leading specialist who works in the tri-state area and is employed by an independent agency. “It all comes down to how much risk you can pose as a driver.”
Eight factors that can affect your auto insurance bill
Some of the things that determine how much you pay for auto insurance are listed below.
• What kind of vehicle do you drive?
There is a clear difference between makes and models of cars when it comes to safety. Also, higher-priced high-end cars are more attractive to car thieves and are more expensive to replace; they are also more expensive to repair after an accident.
• Your adress
If you live in a place that has a higher crime rate, your premium will reflect the risk of theft. If your locality has proportionally more car accidents and files claims, it will also have an effect on your premium.
• How you use your car
If you use your car to get to and from work or use it for business purposes, you will find that you will have a higher premium than those who drive just to go to the supermarket or for leisure trips.
• If you are a good driver
If you’ve never received a ticket for driving or never been in an accident, you’ll have a lower insurance rate than those with less than spotless driving records.
• Your claims record
If you’ve filed insurance claims before, especially if they resulted in large payouts, your insurance premium will reflect this. But you may also find a rate increase if you have only filed claims regarding accidents in which you are not at fault.
• How old are you
Young drivers, especially teenage children, are lumped together as riskier drivers because statistics say they display poor driving habits and are involved in and cause many more serious accidents than older drivers. To a lesser degree, people age sixty-five and older may find their insurance rates increase due to age issues contributing to poorer reflexes, vision problems, and more.
• Civil status
Studies show that husbands and wives are not involved in as many collisions as those who are not married.
• How you rate your credit
Although this may not seem fair to some, insurance companies may classify you as a risky driver due to your low credit score.
Talking to a knowledgeable specialist employed by an independent insurance agency will help you navigate through the web of insurance policies to present you with the most personalized one at the most competitive price.