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A Variety of Factors Can Affect Your Car Insurance Premium
Insurance carriers consider many factors when determining the premium you pay for car insurance. Your deductible is one; the higher your deductible, the lower your premium. You also probably have a higher premium if you live in a city than if you live in a suburb or rural area. And if you have a claim that was your fault, you almost certainly will see your rates go up.
But that’s not all that insurers consider when figuring your rate. Other factors can include:
At The Bensman Group, we are happy to talk to you about your auto policy or any other insurance need. You can contact us at 847-572-0820 or firstname.lastname@example.org.
- The car you drive. This has an effect in two ways. First, the more expensive or exclusive your vehicle, the higher your rates probably will be. But insurers also consider the safety record of the car or truck. Vehicles with above-average safety performance may get a break on rates. So when you check the safety rating of a car you are considering buying, you not only are looking out for your safety and that of your passengers; you also could be saving some money.
- How you drive. The more miles you drive, the higher your rates are likely to be. That’s why an insurer asks whether you drive to work, how many miles you usually drive, etc. Obviously, the more miles you drive, the more likely you are to be involved in an accident. If your driving habits change – for example, if you change jobs or join a carpool -- let us at The Bensman Group know so that we can update your records.
- Your age and marital status. Young, unmarried people – especially men – pay among the highest rates for car insurance. You can’t do much about your age, and we certainly don’t recommend that you get married just to save on your insurance. But if you do get married, let us know so we can let your carrier know. (Age, gender and marital status no longer matter once you get to be about 30.)
- Where you keep your car. If your car is garaged, your rates probably will be lower than they would be if you parked on the street.
- Your credit score. The higher your score, the lower your premium is likely to be.
- Drivers. When you apply for coverage, you must list all the licensed drivers who live in your household – including your recently licensed teen-ager. You also should consider listing any domestic help who has regular access to your vehicle.