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When dealing with auto insurance
rates it is important to know how they are determined.
Surprisingly, there are so many determining factors that
the average person has no clue. Auto insurance premiums
are based on factors, some of which you can control, and
some of which, are unruly facts of life. Obviously, a
sixteen year old boy driving a 500 horsepower corvette
in a big city is more likely to hit something than a 35
year-old married guy driving a minivan around the
suburbs.
Factors you CAN’T change
affecting your insurance rate:
Aging is
unavoidable. You may very well be a mature teen or a
youthful senior, but the oldest and the youngest drivers
are far more likely to have accidents.
Whether
it’s the mothering instinct or fewer NASCAR fantasies,
women statistically make safer drivers.
Although
this can be changed, there have been no reports of
people marrying simply to lower their insurance rates.
Factors
you CAN change affecting your insurance rate:
People
living in rural America are far less likely to have a
collision or a stolen car than those living in a city.
Shockingly, even just moving across the street can
change your rate.
Speeding
tickets, running red lights and stop signs, failure to
signal, etc…are all factors that will increase your auto
insurance rate.
As
the price of your car increases, beware, so does your
insurance premium.
While you
can’t change the past, keeping your slate free and clear
of accidents will look better than lots of fender
benders.
Many
insurance companies feel as if having a poor, or even no
credit history, as a potentially greater liability.
Insurers
have found correlation between your occupation and
risk. A delivery boy would clearly be a higher risk
than a desk worker.
Other
Factors That Go Into Determining Premiums:
- Miles driven per year
- Distance to work
- Years of driving experience
- Whether or not you currently
have auto insurance
- Theft protection devices
(often result in discounts)
- Multiple cars and drivers
(another opportunity for discounts)
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