Did you ever wonder why your rate is so different from Sally Sues rate next door? Let’s talk about it!
- Year make and model of your car:
If your cruising in a 1980 ford Pinto you are most likely paying less for your insurance then someone driving a brand-new Porsche. Insurance companies look at things like, safety factors, replacement parts cost, how easy is it for someone to steal the car and how many liability claims have been paid out with that particular make and model. - Age:
Young drivers are higher risk (because you remember when you where 16) also elderly drivers are higher risk (because, have you driven with your grandma before) and higher risk has a higher premium. - Where you live:
If you live in the city your rate will most likely be higher then someone who lives out in the country…more people, more risk. - Your driving record:
You saw this one coming right?! If your nick name is Mr. Speeds and your racking up the tickets…guess what? Your rate will reflect that, Mr. Speeds! - Credit:
That word again. Yes, believe it or not your credit is actually one of the bigger factors on your insurance rate. Better credit, better rate. - Insurance history:
The longer you have insurance without any gaps the less of a risk you are. Another thing insurance company like to see: loyalty. If you have been with the same company for a long time, you most likely will be rewarded (in your rate) for that. - Annual miles:
The more you’re on the road the more you are at risk for an accident. If you drive under the average annual amount your rate will be better. - Your coverage:
I think this is a given, but I am going to list it anyways. You will pay to have more/better coverage. - Marital status:
The way insurance companies see it (and many different studies over the years) if your married you are less likely to be the risky, joy ridder that your single self once was. Of course, this is not always true but, again, this is how insurance companies see it. - Claims: Last, but one of the biggest factors in your auto rate…claims. If you haven’t noticed yet your rate is really based of what kind of risk you are, so if you have one, or multiple claims on your record your rate will be higher then someone with no claims.
There are still many different factors that go into coming up with a rate, and if after looking over this list you think your rate should be lower, give your agent a call to review any discounts you may be eligible for.
