Which Factors Affect Your Car Insurance Premium?
Isn’t it tempting to go for lower coverage or higher deductibles to save money on car insurance premium? While these are definite factors affecting the rates, one should be aware of others too! Some of these are as follows.
Your age & gender
At a younger age, female drivers are considered safer and as such have to pay lower rates in premiums compared to their male counterparts. However, as one ages this demarcation slowly blurs up to an extent where older men have to pay lower rates than older women do in general.
Type of vehicle
The type of vehicle you drive also has an effect on the money you need to pay and this is true for commercial vehicle insurance as well. Buyers need to consider this when purchasing or leasing new car.
Your driving record
What kind of driver you have been over the years! This factor has a big impact on your premium rates. More the number of penalties or claims, higher you need to pay up on car insurance premium. Being a serious and safe driver surely has its rewards.
Your marital status
Married people with families to consider are generally safer drivers compared to single ones. At least the insurance companies consider this as a factor when determining your premium amounts. So, if you are of age and still unmarried, this can motivate you to finally take the plunge!
Your credit score
Insurance companies nowadays also consider your credit scores when determining your premiums using car insurance calculator. There is nothing definite about with score will give you the best results but in general, having a higher score signify lower rates.
What you do
The kind of work you do is another factor that comes into play during calculation of auto insurance premiums. If you are constantly on the road, which is a part of being a journalist or a delivery driver, then be ready to pay more compared to someone with 9 to 5 office jobs.
What’s your location
Where you live also affects the amounts you have to pay in premiums. Densely populated regions with heavy traffic, increases the chance of an accident and this in turn affects the rates. For commercial vehicle insurance, also the location of your business matters significantly.
Vehicle safety rating
Safety rating related to the model of your car is another important factor determining your premium rate. This depends upon the safety features present inside against accident situations. Presence of traction control, air bags, and automated seat belts can bring the amounts lower.
Your vehicle size
According to insurance companies, larger cars are safer compared to smaller ones. Your car insurance calculator for finding premiums can help you to determine the best vehicles to purchase based on ideal size.
Your vehicle age
Car owners are more likely to do away with older vehicles altogether in case of accidents instead of getting them repaired. So, rates for them are lower than comparatively newer cars. This is another factor to consider for premium calculation.