Factors Affecting Your Rates and Premiums
According to Concord Auto Insurance Company, there are a variety of different factors that affect the premium you could end up paying for auto insurance. Each factor represents a statistical risk for the category that you fall into. Some of the risk factors that are considered include the driver’s gender, the number of miles driven each year and the purpose of your vehicle. Other factors considered include:
You may be able to save even more money on your auto insurance by reconsidering where you live. Where you live can make a big difference when it comes to your auto insurance. For example, if you live in a rural area with little or no traffic you will most likely spend less on car insurance than someone who lives in a congested city or suburb. Areas which have high levels of traffic usually have more accidents. Some neighborhoods also have higher rates of automobile thefts. This can also result in higher premium payments. This is great information to have if you are planning on making a move in the near future.
Your Claims History
If you have an accident or a moving violation such as speeding or reckless driving on your driving record, you are considered to be at a higher risk for accidents. This will cause your premium to increase. Some auto insurance companies will record this information on your policy record for up to five years from when the incident took place. Keep in mind, as your driving record improves, your premium will lower.
Your Vehicle Type
You car can be a big determining factor in how much you will pay each month on your auto insurance. If you have a sports car or other high performance vehicle, you will pay a higher premium. If you drive a van or station wagon, your rates will be much more competitive.
Your Driving Record
You will need a clean driving record free of accidents and tickets to get the best rate available. Be careful about even calling your insurance company to discuss a possible claim. Even if you don’t end up filing a claim it could still be on your record.
Check Your Credit Rating
Many auto insurance companies now view having a poor credit rating or no credit history at all as a potential high risk. If your credit is poor, you may have to pay a higher premium. The better your credit score the more you can save on your insurance.
Your occupation can have a lot to do with your risk of being involved in an accident. For example, a courier or newspaper delivery person who spends most of their workday driving is a higher risk that an administrative assistant who spends most of their day in the office. While to may not be willing or able to change your job, weighing this information against the car you choose to drive can help keep your rates competitive.
Some other factors that auto insurance providers consider when setting your premium include:
To insure that you get the best rate available, shop around and compare quotes from several different auto insurance companies. Enter your zip code into the quote box at the top of the page or on our home page to find out more about Concord Auto Insurance Company today.
Concord Auto Insurance Company
November 5, 2012November 5, 2012 0 Comments