Why would an insurance company care about your credit score? Why should they care where you live or how often you drive your car? The truth is car insurance companies care about many of the details in your life since they use that information to evaluate your risk of filing a future claim. The higher risk they perceive you to be, the higher your premiums are likely to be. Continue reading to learn more about the variables that affect your cost of car insurance and the secret to getting the coverage you need at a very competitive price.
What Goes into Car Insurance Prices?
This is a difficult question to answer since every car insurance company uses its own private formulation for calculating a driver’s individual risk. Negative factors that result in higher prices at one insurer might be overlooked altogether by another. For example, a driver with no history of car accidents or insurance claims might be quoted a very affordable rate at Insurance Company A. However, a quote for the same amount of coverage from Insurance Company B might be much higher since that company places greater emphasis on other factors, such as a low credit score.
Some of the variables that most commonly affect car insurance rates include:
- Where you live
- How long you commute
- The number of miles you drive each year
- Your primary purpose for using your vehicle
- The age of the drivers on your policy
- The amount of debt you have
- Your history of on-time payments
- The type, age, and value of your vehicle
- The safety features available on your vehicle
- The violations and citations on your driving record
- Recent claims information in your CLUE Report
Steps to Keeping the Cost of Car Insurance Affordable
While you may not be able to change your age or where you live, there are some steps you can take to influence your insurance rates. If you are not already working with us, please contact our office to set up an appointment or swing by to speak with us. As an independent agent, we can shop and compare rates from multiple car insurance companies on your behalf, saving you the time and hassle of doing it yourself. Not to mention, it costs you nothing; yet you benefit from one-on-one help and guidance before, during, and after your insurance purchase.
Next, we will work hard to find discounts on your coverage, such as safe driver discounts, good student discounts, and discounts for bundling your home and auto coverage with the same carrier. Finally, we can discuss tweaks to your policy that could yield savings. Cutting your coverage should never be an option when you are trying save on premiums. Doing so could leave you vulnerable to a major financial loss or a lawsuit that puts all of your income and assets at risk. However, we can show you how raising your deductible could result in lower rates without sacrificing the coverage you need.
For more information about the cost of car insurance or to request your free quotes, contact our office today. We look forward to serving you soon.