If you think that you’re paying too much for your car insurance, you may be right. Many people simply accept the rate that they are given, sign their policy documents, and hand over their money. If you think that your rates are too high, it is time to shop for a new policy. As you shop, it’s important that you know how car insurance companies assign your rate. Here are five factors that will determine what you pay:
It comes as a surprise to many people to learn that their profession heavily impacts how much they are charged for auto insurance. If you are a doctor, nurse, law enforcement officer, scientist or banker, you can expect to pay lower rates than a delivery person or journalist. Many studies have been conducted into the driving habits of different professionals; it’s been found that people in certain professions are less likely to be involved in a car accident and, as such, these professionals will be offered lower rates.
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Where you live also makes a difference in your likelihood of being involved in a collision. If you live in a rural area where there are fewer cars on the road, you are obviously less likely to be involved in a collision. If, on the other hand, you live in a highly urbanized area where you must share the road with thousands of other vehicles, you are more likely than average to make an accident claim.
3. Driving History
You don’t have to have a stellar driving history, but your last three years on the road should be unblemished. If you have been convicted of a DUI, have a persistent lead foot, or seem to have difficulty with parking tickets, you will pay for it when it comes to your auto insurance. Unfortunately, there’s no way to outrun your sketchy driving history; you will simply have to wait it out. The good news is that once you have made it for three years without a ticket, your insurance rates may drop significantly.
4. Type of Vehicle
Most people know that a family sedan is cheaper to insure than a Corvette, but what most people don’t realize is that there are other considerations when it comes to your vehicle of choice. For instance, if your car is new, you will pay higher rates than someone who is driving the same kind of car made a few years ago. You will also pay higher rates if your car has made the top ten list of the most commonly stolen vehicles. If you are looking for cheap car insurance, your best bet is to drive a family sedan with high safety ratings that is between three and five years old.
5. Age and Gender
If you are a young, single male, some insurance companies may charge you double what they will a mature, married female. Insurance agencies have found that young, male drivers are more likely to be involved in accidents and, therefore, more likely to file claims. You can’t do anything about your gender, but you can look forward to the day when you are a bit older and your rates will drop.
When you are shopping for auto insurance, it is important that you understand the factors that are used to determine your rate. Knowing how car insurance companies determine the amount of your premiums can help you find the best deal available.
James Grondin blogs about car insurance. If you live in a city where car insurance is expensive, or if you have a high-premium profession, you can visit carinsurance.org.uk to find cheaper quotes for free.