5 Factors Car Insurance Companies Consider When Creating A Quote
When you shop around for an insurance policy, it is important to understand the factors the insurance company will take into consideration to create your quote.
#1: Age
Your age matters when it comes to car insurance. Teenagers and people in their early 20s are charged higher insurance rates due to the higher rate of accidents in this age group. Insurance rates also tend to rise due to old age as well; being behind the wheel at 85 will cost more than it would have if you were twenty years younger.
#2: Driving Record
Your driving record is an essential factor that insurance companies weigh when considering what to charge you. Your driving record includes any violations and accidents on your record. The number of years a ticket or accident will stay on your record depends upon the state you live in. It is best to work to maintain a clean driving record to enjoy lower rates. Even one ticket can raise your insurance premium, and multiple tickets can make it very expensive to obtain insurance.
#3: Home Address
Your home address can impact your insurance rates, as insurance companies look at the rates of vandalized and stolen cars in your area. They will consider the number of accidents in your area as well.
This often translates into higher insurance rates in more densely populated areas and lower insurance rates in less densely populated areas.
#4: Credit Score
In some states, insurance companies consider your credit score and use it to help form your insurance score. Using your credit score as a factor in your insurance score or premium is banned in other states.
#5: Vehicle
Finally, the vehicle you drive is going to have a big impact on your premium. The insurance company has to weigh how expensive it would be to repair your car should you get into an accident or the value of replacing your car if it was totaled. The higher value of your vehicle is, the more it generally will cost to provide insurance for your vehicle.
Finally, it is essential to understand that the weight each insurance company gives to each factor can vary, which is why you can provide the same information to multiple insurance companies and get different premium results. That is why you will want to compare quotes from various companies to see which company can provide you with the best deal.
If you are ready to get an insurance quote, contact an agent near you today.
