The premium of car insurance is affected by many factors, even some that you have never thought of. Every company takes these factors into consideration, assigning to them different weights. For this reason, you can find different prices for the same coverage between different companies.
In this article, we have gathered for you all the factors that influence the price of your car insurance premium.
Age and Gender
The age is a significant factor for car insurance, as companies view that younger people tend to drive riskier than older drivers. Furthermore, men drivers are considered more dangerous in the roads than female drivers, and this is why they get higher premiums.
Your driving history is one of the things that insurance companies will check. They consider that if you have been in an accident before, you are more likely to be involved in another one in the future. Some companies don’t even accept applications where the driver has a bad driving record.
The years of your driving experience can also influence your car insurance premium. More specifically, the more years of experience you have, the less possible it is to be driving carelessly. So, if you are a new driver, then chances are that companies will give you a higher premium.
Location of your Residence and Parking Spot
The area that you live and park your car are some of the factors that affect your car insurance. If you live in a region where that rates of car accidents and claims are high, then you are likely to be offered a higher rate. Even if you are a careful driver and have a perfect driving record, the location of your residence will influence the outcome.
Your credit score is one of the major factors that insurance companies are looking into. The lower your credit score, the higher the premium you are going to get. This is because drivers with a poor record are considered more likely to file for claims.
If you use your car a lot, then it is more likely that you might get into an accident. Moreover, your vehicle is more likely to break down and need of repair. For this reason, a big annual mileage will result into a higher car insurance premium.
Type of the Car
Your car is a major influence for your rate. In general, larger cars are considered safer than smaller cars and so you will be offered a lower premium. However, keep in mind that cars with large engines tend to be offered higher premiums.
Age of the Car
Another factor, is the age of your car. Insurance companies consider that older cars might be completely destroyed or face graver damages if they get involved in an accident. Therefore, you will get a higher rate for an older car.
Being single, is another sign for the insurance companies that you might be a reckless driver. If you are married or have a family, you are more likely to be careful while on the road.