October 10, 2013

5 Factors That Impact Car Insurance Rates

Most drivers are already fully aware that each auto insurance policy's rates are customized based on age, gender, driving record, and the make in model of a vehicle. But these are just a few of the many aspects affecting car insurance rates. There are 5 key factors that will impact your car insurance rates that you may not know.

1. Marital Status:

Believe it or not, your marital status can often affect your car insurance premium. With many companies reducing those premiums significantly, it pays to know whether you can be discounted as a married couple. It has been factually documented that those who are married tend to be better and more safety conscious as drivers than those who are single.

2. Location:

Planning a move? You may want to see if this will impact your policy rates. Insurers set car insurance premiums based on the determined risk that you will file a claim. Therefore despite driving the same vehicle and maintaining your record, changing zip codes could potentially add up to higher premiums. These increases and decreases in rates for different areas vary depending on factors such as crime or theft rates for a location, area accident statistics or the variable in the distance from your new home to your job. Though the rate of thefts and accidents may seem an obvious factor, the distance from your new home or apartment to work can also affect a policy with low mileage discounts.

3. Occupation:

Since car insurance rates are determined by the level of risk an insurance agency undertakes to provide coverage to the driver from excess in costs from damages and medical expenses, the potential hazards you expose yourself to at work can escalate your rates. With a more dangerous profession, the insurer accepts higher risk of liability which is precisely why premiums will rise.

4. Credit:

Many insurers find that the vast majority of drivers don't know how seriously credit may impact their rates. For an insurance company, a lower credit score can mean much higher risk of non-payment for services. After all, your credit score is viewed as a form of financial history so it's understandable that it would have an affect with your premiums.

5. Gaps:

Even gaps in past coverage can increase rates. Carriers consider drivers who frequently lapse in payments as poor investments. Even with a clean driving record, you will likely pay much higher premiums with a bad coverage history.

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