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How Car Insurance Rates Are Determined

Friday, 01 November 2013 13:32

If you are a car driver, then you may know about some of the factors that determine the rate of your car insurance like your age, the make or model of your car as well as its age, and even where you live. However, those are just some of the factors that decide how much your car insurance bills will be. It's what you may not know that may be costing you more in car insurance. With these guidelines and tips, you can put an end to unnecessary fees and get the best rate possible for your vehicle.

What You Don't Know Can Hurt You

The old adage 'what you don't know could hurt you' can be applied to searching for car insurance and determining rates for your particular situation. For instance, there are millions of people out there that are not aware of the fact that your location can dramatically affect your car insurance premiums. If you are living in an area with a smaller population, you are far more likely to pay less for your insurance than someone that lives in a larger town or even metropolis. Single, divorced, married? Your marital status can also affect your premium as insurers are likely to offer lower rates to those that are married as they are seen as more stable and secure and less likely to participate in high-risk activities on the roads (read: children play a role as well). Another factor to consider is what occupation you hold. If you old a degree or are in a field that is considered safer, then your car insurance will reflect that.

Other Factors Determining Your Car Insurance Rates

Protecting your credit score is something that most people should be concerned about for many reasons. A poor credit score can affect more aspects of your life than you can imagine. When it comes to car insurance, a high credit score likely will yield you a lower car insurance premium as people with higher scores are viewed as more stable and less likely to default. Conversely, if you are from a lower income bracket and have had a history of skipping payments or having significant gaps in your coverage, you are likely to receive quotes from companies that are substantially higher as you will be viewed as a flight risk when it comes to your bills. These are many of the obstacles you will face that determine your car insurance rates and wise researchers should be prepared to honestly answer the questions associated to get a ballpark figure of how much they will be required to pay.

Lesser Known Factors Affecting Your Car Insurance Rates

If you know off many of the aforementioned factors in regards to car insurance, it is probably a safe bet that most are not aware of other factors that determine the rates you pay per month for your vehicle. If you suffer from a spotty driving record and have received more than your share of speeding tickets, you can expect to pay slightly more to substantially more than someone with a clean driving record. The amount of vehicle claims made in your name also will affect the rate. Also, if your car is newer as opposed to older, your coverage rate will reflect this. Your gender also plays a vital role in determining the rate, with women usually paying more than men, especially single men. All of these are factors that have a hand in deciding the rate you will likely pay for your car insurance.

Compare Quotes and Save Hundreds a Year on Car Insurance

The easiest way to make sure that you are getting the best rates is to ask for quotes from different insurance companies. Get started comparing quotes now!

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