Introduction
Today, most people are complaining about the high expenses of life. It seems as if anyone who has a car is hit by numerous costs that he has to pay. This includes the cost of buying the car, fuel costs, maintenance and repair costs as well as the costs of the most important thing – car insurance premiums.
Of course, the question that is running in your head and you still have no answer to it is: what is the reason behind making car (read car, motorcycle, truck, RV, etc) insurance very very expensive?
The answer to this question or any question has a relation with insurance, come from the insurance company itself.
Insurance rates differ from one person to another, and they are determined depending on a few factors. Your insurance rates will be decided based on what kind of driver you are. Here are below eight factors that may affect your car insurance bill.
1. What Type of Car you Drive
Of course, not all car models are the same and they differ in the levels of safety. Moreover, higher-end cars with bigger price are more prone to robbery as well as they are replaced with higher price. Not to mention that they can cause you expensive fix costs in case of an accident.
2. Your Address
If you live in a neighborhood where the crime rate is higher, your car premium will be higher because of the theft risk. Also, if your living place is known for more auto accidents and submitted claims, this means that your premium will be also higher.
3. How You Use Your Car
The way you use your car also determine how much you will pay for the insurance. If you use your car to move to your workplace or use it for business purposes, this means that you will have higher car insurance premiums than only using the car to go to the grocery or holiday trips.
4. If You Are a Good Driver
If you have never caused a driving accident or gotten a driving ticket, the insurance company will be happy to offer you low insurance rate than those who haven’t a clean driving record.
5. Your Claims Record
If you have ever filed insurance claims, and this ended getting high payouts, your car insurance premiums may be more expensive. Also, you may notice a little bit increase in rates if you have only made claims related to accidents that you were not faulty.
6. How Old You Are
Young drivers, especially teenagers, are considered together to be worst drivers who easily cause accidents, because statistics show that they are riskier drivers who share bad driving habits more than older drivers. Moreover, sixty-five and older drivers may also get higher car insurance premiums because of age concerns like poor reflexes, eyesight issues and more others, that can increase the risk of getting accidents.
7. Marriage Status
Insurance companies offer low-cost car insurance premiums to husbands and wives than those who are not married yet. This is because studies say that people who are married are not involved in as many collisions as those who are not.
8. How Your Credit Rates
Although this may not be liked by some people, insurers may consider you as a driving risk based on your poor credit score.
Consulting an expert from an independent insurance agency will help you explore the insurance policies available online so that you can get the best one with the cheapest price.
