FREE Quotes, Multiple Insurers
The major concern of most drivers is auto insurance cost. Most insurance companies calculate their auto insurance cost based on several factors. The “base rate”, you pay is included in your premium. The “base rate” is adjusted as per the following factors such as age, sex, driving pattern, marital status, location, credit history, claims history, model, make and the year of the vehicle. Each auto insurance companies uses this factors differently, so you should always remember this when you shop for a good auto cheap insurance.
Age :- According to the statistics the adult drivers between the age of 25 and 65 have less accidents than drivers under the age of 25. Due to this, insurers charges young drivers and families with young drivers with higher rates.
Gender :- Young men below the age of 25 are more involved in accidents per mile than any other age groups. As a result some state laws allows insurance companies to charge higher rates based on the gender and age as statistics indicates a higher risk.
Driving patterns :- The increase in the number of miles you drive can increase the rates. For eg. if you drive only below 8,000 miles per year, you will only have to pay normal rates than if you drive 15,000 miles per year.
Marital status :- Statistics indicates that, singles have more accidents than married couples, so normally premiums will be higher for singles.
Location :- The number of accidents in a highly populated area is greater. So this will increase the collision and liability premiums. The premiums for comprehensive coverage will also increase if the crime rate in urban areas is higher. Companies also considers where you keep your car when they decide on your rates, even though you drive it mostly through rural or urban areas.
Credit History :- The insurance company uses your credit history to assign you a insurance score. This score is one of the factors which will decide whether the company should provide you a coverage or how much the company should charge you. However due to the recent changes in the law, the use of credit history is limited.
Claims History and Driving Record :- A surcharge will be applied by most insurance companies to drivers convicted of multiple traffic violations or drivers involved in accidents.
Vehicle type :- Luxury cars and more expensive vehicles have to pay more for collision or comprehensive coverage. This is due to the fact that, high performance Vehicles and sports cars are more involved accidents, also the cost of repair and chances of getting stolen are high. So insurers will charge higher for this type of vehicles.
Always remember, for a safe driver auto insurance cost will be always low. So drive safe!!