Six Things Car Insurance Companies Consider

Insurance companies consider many factors when preparing a quote for a customer. Coverage for an auto will include such things as your driving record, how many miles you drive in a year and the kind of car you drive. It all adds up. Your quote will not match anybody else, so it does no good to compare insurance rates with your neighbor or coworker.

Driving Record

Insurance companies will obtain your driving record. How many miles you commute to work, the number of accidents, tickets and D.U.I.s in the last 10 years will be considered.

The number of miles you drive in a year are very important. If you commute long distances, or have a job that requires you to drive your personal vehicle for business purposes, means that the chances for an accident are increased.

The number of D.U.I.s, tickets and accidents you have are extremely important. If you are “accident prone” or consistently break the law and drive while intoxicated or otherwise get pulled over for traffic violations, you can be certain that your insurance rate will increase. That is, if the insurance company is willing to take a chance with you as a customer.

The Car

Some cars are stolen more than other and this drives up the cost of the insurance coverage. Also, the newer and more technologically advanced the car may be will also be factored into the quote. Expensive or rare parts and repairs if the car is damaged will also be considered.

It may be surprising that an older car without all the latest safety features can actually be insured for less.

Age, Gender and Residence

A teenager who is a new driver will pay a higher premium than his parents. Older drivers whose reflexes are beginning to slow may find themselves paying a slightly higher premium than they did in their younger years. However, their years of experience, and good driving record will also be considered when creating a quote.

As a general rule, men are charged a higher rate than women because they are more aggressive drivers and statistically are involved in more accidents and receive more traffic tickets.

Customers who live in large cities may also be charged a higher premium because of the heavy traffic, greater accident risk, and higher crime rates than usually occurs in small towns or rural areas.

Credit Score

A person with a higher credit score is viewed as more responsible than a person whose credit reflects missed or late payments, excessive credit card debt and other indicators of bad money management.

Marital Status

A married person is considered to be more responsible than someone who is single. They have fewer accidents and are generally not as willing to take unnecessary risks. Teenaged drivers will not be expected to be married and persons who are widowed or divorced will be considered to be responsible and eligible for lower rates.

Occupation

A person who uses his car for business purposes and drives a lot of miles on a yearly basis will pay a higher premium than someone who uses his car to commute to and from his place of employment The more time the car is on the road the greater the chance for an accident, and the higher premium the insurance company will charge.

Conclusion

When shopping for auto insurance it is best to do your homework and study the websites of the companies that you are considering. These six questions will probably be asked on the application. Be honest, especially about your driving record, it is a matter of public record and the insurance company will check your history. The more honest you are the easier it will be to get cheap car insurance that covers you.