Factors Affecting Your Insurance Rate

By acashel | Posted in Uncategorized on Monday, July 8th, 2019 at 10:15 pm

Many things can affect your insurance rate, but how is it actually determined? Most insurance companies look at a number of key factors to calculate how much you’ll end up paying for your car insurance.

Your Deductible

The specifics of your policy and deductible (the amount of money you will pay in an insurance claim before the insurance coverage kicks in)

play a major role in your monthly payment.

Generally, choosing a higher deductible means a lower monthly payment, whereas choosing a lower deductible means a higher monthly payment. Additional coverage gives you added insurance protection, depending on the claim, but will also add to your monthly costs.

Your Car

Car insurance providers often develop vehicle safety ratings by collecting a large amount of data from customer claims and industry safety reports, and offer discounts to customers who drive safer vehicles.

The opposite can apply for dangerous, sportier rides. Some insurers increase premiums for cars more susceptible to damage, occupant injury or theft.

So before you shop our Drive Casa inventory, do some research. Does the vehicle that has caught your eye have strong safety ratings? Is this specific model often stolen? Knowing the answers to a few simple questions can go a long way in keeping your rates low.

How Much You Drive

People who use their car for business and long-distance commuting normally pay more than those who drive less. This is because the more miles you drive in a year, the higher the chances of a crash.

To avoid this, consider joining a car pool, riding your bike or taking public transportation to work.

Your Address

Generally, due to higher rates of vandalism, theft and crashes, people who live in urban areas pay more for car insurance than those who live in small towns or rural areas.

Your Record

Drivers who have more accidents generally must pay more than those who have gone crash-free for several years. Big traffic offenses like DUI’s can also significantly increase your auto insurance rate.

Even though you can’t rewrite your driving history immediately, having a crash on your record can be an important reminder to always drive with caution and care. As time goes on, the effect of past crashes or violations will decrease.

Your Credit Score

Some auto insurance companies use credit information as a prediction of future insurance claims. Where applicable, many will use credit history to help determine the cost of car insurance. Maintaining good credit can have a positive impact on the cost of your car insurance.

Your Demographic

More specifically, your age, sex and marital status.

For instance, crash rates are higher for all drivers under the age of 25, especially for single males. This is why younger people often pay more for auto insurance. However, if you are married, your insurance rate usually decreases.

Potential Discounts

In some states, younger drivers are able to take driver safety courses that will lower premiums by removing points from your record for moving violations. Other auto insurance companies also offer discounts for military members, veterans, good students, good drivers and people who insure multiple vehicles. Always ask if you qualify for a discount!

Looking for more information regarding insurance coverage and information? Contact Drive Casa today!

Or, if you’re in the need for a safer vehicle that is less expensive to insure, we can also help with that! Click here to get pre approved today!


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