Many things can affect your car and auto insurance rates. Trying to determine how your premium is calculated is a difficult and confusing process, and I’m not even sure if the insurance companies fully understand how they come to the numbers they come to. There are however 4 main points that seem to be vital in affecting your car and auto insurance rates.
4 Main Points That Affect Insurance
1) Age of Driver
Insurance companies have done tons of research into learning driver’s habits. They have found that young drivers get into more accidents, and get more traffic violations compared to older drivers. It appears that 25 is the magic age, since once you hit this age, your rates drop dramtically!
Other statistical factors also seem to play a role, such as sex. I really feel that this is totally unfair of the insurance companies, and should not be tolerated. It would never be allowed in any other form of business. Imagine purchasing a new plasma TV, and having to pay more for the extended warranty, because I am young male, and young males watch more TV then older males, so the TV is more likely to break. It is ridiculous!
That would never be allowed in any other business so why is it allowed at the insurance company?
2) Driver’s Record
This is the most logical of all the factors that affect auto insurance rates. The better driver you are, the better rates you receive.
Your insurance rate will go up, the more accidents and traffic violations you receive, and it will drop every year that you don’t make a claim, or have any traffic violations.
3) Where You Live
The area you live in also affects your car and auto insurance rates. If you live in a city with higher rate of crime, and vandalism, then your car is more likely to get stolen or vandalized. Since the likelihood of a crime happening against your car is higher, the likelihood of you making a claim is higher, which will increase your premium.
4) Make and Model of Your Car
The type of car you own will determine what you pay each year for insurance. A sports car is more likely to get broken into, and also, people who drive them are more likely to get traffic violations, thus increasing the cost of insurance.
This factor still puzzles me, as newer cars are loaded with new safety features
which should prevent accidents from occurring, as well as prevent injury and damage if you are in an accident. If the costs for injury and damage, as well as the likelihood of injury and damage are lower, this should lower your premiums! It somehow seems to do the opposite, another insurance enigma.Here is a list of how cars measure up. It is provided by the good people at theInsurance Bureau of Canada. In each category, 100 is the average rating, so if your car is rated 150, it is 50% above average, or 50 is 50 % below average. Lower numbers are more favorable.
There are alot of other small factors that seem to affect your car and auto insurance rates, such as amount of driving per year, and how far you travel to work, but these factors have smaller effects on your overall premium.Remember to check out the tips for lowering your insurance rates, to try and get the best coverage for the lowest price.
If you want to lower your car and auto insurance rates by altering the make and model of the car as outlined by the article How Cars Measure Up, then below is a link that contains some tips for buying a new or used car. It is very helpful! carbuyingtips-sage.com we’ve provided a car buying experience that’s chocked full of the very best resources you’ll need to quickly get from point A to point B and arrive at a decision that results in you finding the best car you’ve ever owned.