10 Things That Could Easily Reduce Car Insurance Rates
Everyone needs car insurance, but everyone wants the lowest car insurance rates. Many people believe that reducing rates by choosing lower coverage or higher deductibles is the only way to save money. While these are the two main factors, several others may affect your coverage. Many of these factors will be outside of your control, but knowing what they are can help when purchasing car insurance and trying to lower your expenses. Learn more by speaking to a car insurance claims attorney.
Demographics – Your demographics include your gender and age, and plays a larger role on your car insurance than you may think. Young men usually pay higher rates than women, because teenage males are more likely to get into an accident. On the other hand, older man usually pay lower rates than women because their driving tends to improve.
Marital status – Being married actually gives you an advantage on your car insurance rates. Married people tend to have fewer accidents than single people, thus married people pay lower rates. After that, car insurance companies will take into account your individual driving habits.
Where you live – Most accidents occur close to home and in certain areas/big cities. The more populated an area, the increased number of cars on the road, and therefore the more risk of accidents. Your car insurance company will look at where you live to determine your rates.
In addition, it may cost more to repair your vehicle in some areas, or some areas may have higher rates of theft or uninsured drivers. These are all factors to think about when deciding where to live since it may also affect your car insurance.
Credit score – Many people do not realize insurance companies may check their credit when they purchase auto insurance. Insurance companies will take your credit score into account. Lower scores typically mean higher premiums.
Occupation – What you do for a living seems to have a relation to how you may drive. Insurance companies will consider this risk and assign a premium accordingly. For example, if you are a delivery driver who is constantly on the road, you are more likely to be in an accident. On the other hand, airline pilots are seldom on the road. Lastly, police officers, paramedics, and other people in similar roles get better premiums, because insurance companies consider them more careful drivers.
Vehicle safety rating – All vehicles come with a certain safety rating. The higher the safety rating of your vehicle, the lower your premiums. The difference is that you will most likely pay for these safety ratings when you initially purchase the car. Safer vehicles are more expensive. Safety features may include air bags, automatic seat belts, and traction control.
Vehicle size – As a general rule, larger cars are safer than smaller cars, even with the same safety rating. This means you will receive better rates if you drive a larger vehicle. This does not apply to large engines however. A relatively small car with a large engine such as a V8 in a sports car, will generally have higher premiums.
Vehicle age – Although repair costs for old and new vehicles are the same, older cars are more likely to be a total loss in an accident. It is more likely the owner will replace the car instead of paying for repairs. New cars have less likelihood of bring total losses requiring replacement after an accident, which means they receive higher collision coverage and also a higher premium. If your car is old enough, you most likely won’t have collision coverage at all.
Likelihood of theft – Thieves steal some models of cars more often than others. Lists of these cars are easily available on the Internet, thus it is no secret. To an insurance company, this means higher rates, but having an alarm or other anti-theft features may lower these costs.
Driving history – Unless you are a new driver, most people know their driving history can make or break their insurance rates. Accidents, tickets, or previous auto insurance claims will all show up on your record. If your driving record is extremely poor, insurance companies can refuse coverage altogether.