You could be aware of factors such as collection of traffic tickets, your driving history and your age that determine auto insurance rates. These are just some of the factors in the calculation of the insurance rates. If time has come that you have to renew your car insurance and are wondering how much you are going to shell out this time, then this article will help you know how your car insurance is determined.
The calculation of insurance depends on the kind of coverage you opt for. It could be a coverage that pays for repairs to the damage caused or a policy that takes care of all kind of things like court fees, damages and so on. The insurance company will use a formula and tell you the amount of money you have to pay. Below are factors that affect car insurance:
If you are below twenty five years, expect to pay a higher premium. And if you are above fifty years old, then the premium will be higher as well. People between 26 and 49 years old can get the most competitive rates.
The make and model of your car is another factor used to determine the insurance amount. A sports car attracts higher premium rates because chances of it being stolen or damaged are higher than other economy cars.
Female drivers get premiums that are lower than male drivers. It is believed that female drivers tend to be more careful than male drivers, so the lower the premiums.
Your driving record
Your driving record can send your car insurance skyrocketing. Traffic violations and higher number of accidents caused can result in a higher premium.
Where do you live? If your neighborhood has a high crime rate, then you are likely to pay a higher premium.
Your marital status
This is another factor that helps insurance companies to arrive at your final premium. People who are single get slightly higher premium than their married counterparts.