What Factors Affect My Auto Insurance Rates?

This is a question that most people ask themselves when out shopping for the most suitable car insurance. You can be tempted to cut down on your rates by selecting a coverage with lower amounts or by simply increasing your deductibles. These are the most common aspects that affect your overall car insurance cost. 

There are various other factors that may affect your total rate with some of them being completely out of your control. However, being aware of these factors can actually assist you in making a sound decision when it comes to purchasing insurance. With this information, you will also be able to find the most suitable method to reduce your expenses. Seen below are some of the most common factors.

1. Age and gender. Young men often get higher insurance rates when compared to young women. The reason behind this is due to the fact that the number of male teenagers involved in accidents is much higher than that of women within a similar age bracket. 

However, this is the exact opposite when dealing with older men. It has been noted that more older ladies are involved in minor accidents when compared to men although the premium cost difference between the two is not that major. 

2. Marital status. It has been noted that married people tend to get involved in less accidents than single individuals. 

Therefore by getting married an individual especially a man can meaningfully lower their rates. The amount at which your rates are lowered is largely dependent on your former driving history. Men who have never been involved in a car accident with a perfect driving record, can easily pay nearly halved rates. 

3. Where you reside. Due to the fact that a good number of traffic accidents take place much closer to home, the area you reside in can significantly affect premiums. Neighborhoods considered as being densely populated with a high number of cars are likely to have a higher number of accidents with injuries and theft.

The cost of car repairs can be much higher in a given number of areas than in others, while the theft rate may be higher in others. In addition the number of unemployed and uninsured drivers has risen drastically especially in the urban areas. This is because a large number of people cannot afford to have their cars insured. 

4. Credit score. A good number of insurance companies determine your rate after looking at your credit score. There is no set point from which credit scores start to affect premiums. However, lower scores generally translate to higher insurance rates. 

5. Career. Auto insurance firms also check the relationship between a person's career and their accidental risks. Their final judgment will enable them regulate your rates accordingly if they have a reason to believe that you are at a higher risk of getting involved in an accident. 

A good example would be, police officers, nuns and paramedics who receive better rates since they are considered as being more careful when compared to the average driver. 

Conclusion:

The information presented will help make you more informed about insurance rates. It has also clearly answered the question ''what factors affect my auto insurance rates?''.