You probably know that what kind of coverage you get and your driving record affects the cost of your car insurance, but there are other factors that also come into play when a company decides to give you a quote. Here are some others:
Coverage and Deductibles
Of course the cost of your car insurance is going to depend on what kind of car insurance you choose. The more coverage you choose, the more your premium will be. And when it comes to deductibles, the less you pay when the accident occurs, the more you’ll pay in your premium.
Car insurance companies see certain vehicles as more liable than others to get into an accident – for example, a two-door sports car is more liable than a family van. To compensate for this, companies charge you more for insurance based on the car you drive. If you want to pay less, opt for a four-door sedan or a low-key SUV.
Place of Residence
In case you didn’t know, where you live determine how much you’ll pay for car insurance. Places like Louisiana and Washington D.C. have significantly higher insurance premiums than places like Alabama or North Carolina. The variety can even differ from city to city within a state; the difference has to do with weather, crime rates, laws, traffic and other factors.
How Far You Drive
Every time you drive, you put yourself and others at risk of an accident. If you’re someone who drives thousands of miles every year, you’re likely going to have to pay a higher premium than someone who only drives around town.
Your credit score and credit history come into play every time there’s money involved – whether it’s taking out a loan, mortgaging a house, applying for a credit card, or choosing car insurance. The higher your credit score and cleaner your credit history, the more leniency you’ll receive when it comes to your premium quote.
This includes your age, sex, and marital status. While age and sex are easily understood (a young teenage boy is more of a liability than a middle-aged woman), the marital status may seem a big strange. On average, car insurance premiums are higher for those who are single or divorced than for those who are married. This may be because married people tend to be more responsible, and therefore, some insurance companies give them a discount.
One of the main things insurance companies take into consideration before offering you a premium quote is your driving record. If you have a history of accidents and traffic violations, it’s more of a risk for them to take you on, so your premium will be higher.