Factors That Affect Your Auto Rates
To your auto insurance company, you represent a statistic. By using statistical data your auto insurance company will determine your rate. Some factors that may affect your premium are:
- Where you live: If you work or live in a densely populated urban or metropolitan area, your risk of getting into an accident increases dramatically than if you were to live in a rural area.
- Your credit score: It might seem a little unfair, but your credit score may affect your rate. Studies show that people with higher credit scores are less likely to file a claim.
- Current marital status: Married people file less claims than those that are unmarried according to statistics.
- How often you drive: If you use your car a lot, or drive long distances for work, you may be subject to a higher rate since the more you drive, the greater chance of having an accident.
- Your gender: Whether you are a male or female can influence your auto insurance premium. Teenage boys can double a policy's premium, while the average teenage girl increases a policy by 50 percent.
- Your age: Certain age groups are riskier to insure. Teenage and older drivers may pay higher rates than others. Teenagers are the group most likely to experience an accident, usually due to distraction or immature driving practices. Older drivers are generally less likely to survive an accident because of frail physical condition.
- The car you drive: Sports cars and luxury cars are more expensive to repair, especially if original equipment manufacturer parts are used. Older cars are usually less expensive to insure.
- Claims frequency: How often you file a claim is the greatest factor that can adversely affect your premium. If you don't have to file a claim and the matter can be handled on your own, it may be wise to leave your auto insurance out of the matter.
Sources
- How Auto Insurance Rates are Determined. Retrieved April 18, 2008, from http://www.naic.org/consumer_auto_rates.htm
- Credit Scoring. (2008). Retrieved April 18, 2008, from http://www.iii.org/media/hottopics/insurance/creditscoring/
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