If you are shopping for car insurance, you may be wondering what factors influence car insurance rates. There are a number of things that car insurers take into account when setting your premiums, and each company may weigh these factors differently. Some of these factors are within your control, while others are not.
The i.e. Insurance team is here to take the stress out of car insurance shopping with this guide. Read on as we break down the most common factors that affect car insurance rates. By understanding how these things impact your rates, you can be more informed when shopping for a policy.
1. Type and Age of the Vehicle
One of the most important factors car insurance companies consider is the type and age of your vehicle. If you have a newer car, it will likely have more safety features than an older model which could help you get lower rates.
Additionally, luxury cars tend to have higher insurance rates because they’re more expensive to repair or replace if they’re damaged. Sports cars also typically have higher rates because they’re more likely to be involved in an accident. If you’re looking for a new car and want to keep your insurance costs down, consider choosing a make and model that’s less expensive to insure.
2. Your Driving Record
Another big factor in car insurance rates is your driving record. If you have been involved in accidents or have received traffic tickets, this will likely impact your rates. Insurance companies view these as red flags that you may be more likely to get into an accident in the future, so they charge higher premiums to offset this risk.
3. The Location You Live In
Where you live can also affect your car insurance rates. If you live in a high-crime area, your rates may be higher to account for the increased risk of theft or vandalism. Or if you live in a rural area, your rates may be lower because there is less traffic and fewer accidents.
4. Average Number of Miles Driven in a Year
The car insurance company will also ask how many miles you drive in a year, as this is another indicator of risk. If you drive a lot, you are more likely to be involved in an accident than someone who doesn’t. This is why people who commute long distances or have multiple cars often pay higher rates.
5. Credit History
Your credit score is another factor that car insurance companies take into account when setting rates. Insurers view people with good credit as less of a risk because they are more likely to pay their bills on time. On the other hand, people with bad credit are seen as higher-risk customers and will often pay higher premiums.
6. Your Age and Gender
Age and gender are two more factors that can influence your car insurance rates. In general, young drivers (particularly males) are considered to be higher-risk than older drivers and pays correspondingly higher premiums. Gender also plays a role, as statistics show that males are more likely to be involved in accidents than females.
Let the i.e. Insurance Team Help You Save on Car Insurance Rates
At i.e. Insurance, we understand that car insurance rates can be confusing and frustrating. That’s why our team of experts is here to help you find the best policy for your needs. We’ll work with you to compare quotes from different insurers and find the one that offers the best coverage at the most affordable price.
Call us today at 724-719-2093 or contact us online to get started! We look forward to helping you find the perfect auto insurance policy.
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