Personal Factors that Affect Insurance Rates

A news reporter recently contacted us with a question about the kinds of personal information that can impact the cost of auto insurance. She wanted to ask if there is anything people can do in an effort to reduce their high-rates.

They’re good questions, and we were pleased to help respond to them. While doing the research we realized that almost all the information needed when calculating vehicle insurance rates is in some way personal. So, here you have it – 5 personal factors which are affecting the price of your auto insurance:

1) Are you a “Safer driver”? When deciding your the rates of your insurance plan, the insurance company takes into account the amount of your accidents, your ticket history and how many miles you drive each year. If you drive more, you’ve got greater chance to get into an accident or to have a ticket. Safer driving – meaning a brief history free of accidents and moving violations – also points to someone who’s less likely to file a claim.

2) The car you drive. Car insurance premiums are founded in part on the car’s current price, the cost to repair it, its overall safety record and the likelihood of robbery, according to the Insurance Information Institute. If you think about it all those things make sense. The cost of repairing a Ford Fiesta will be way lower that the fixing cost for a brand new Ferrari California GT 2010. The premium will reflect this.

3) Your essential personal information, including your age, occupation and where you live. Each of these things factors into the steps involved in preparing your insurance premium because insurance firms base their premiums on actuarial information about drivers. Mathematically teenage boys are involved in more car accidents than 40 year old men, so a middle aged man will almost certainly have to pay less for insurance than a teenage boy will do.

If your work requires more driving than usual then this will play a role in your rates. Work that involves lots of miles on the road, such as an outside sales job, could affect rates. Most insurance companies do think that if you drive more than the average, you have the upper chances of an accident.

It does make a difference where you live, for many insurance vendors. Again, they consider the neighbourhood statistics – the money necessary for medical care and car service, a nearby trends of car crashes, how many car are already stolen there, as reported by the Insurance Information Institute.

4) The type of coverage you desire. Be ready to pay more, when you purchase a lower insurance deductible and extra coverage.

5) Your credit history. Some insurance companies use credit scores as a element in setting premiums. In 2010 seven US states have used credit information irrespective law and regulations, that’s way now this process is coming under attack and may soon vanish. A few other American state legislatures developed laws to regulate that same practice.

Despite these details, the easiest method to find cheap car insurance for high risk drivers is simply by comparing automobile insurance quotes online.