Online Vehicle Insurance – Factors That Affect car insurance Rates
There are many variables that a company will look at in order to determine the risk involved in insuring a potential customer which is used to calculate a rate, the most common factors that will affect a motorist’s rates are as follows;
Age
Gender
Place of residence
Marital Status
Driving history
Type of vehicle
Vehicle usage
Annual mileage
Desired Coverage
There are many reasons that these factors affect the rates of premiums and there usually based on statistics and the experience that a particular insurer has experienced with certain drivers. A person’s driving history is probably the most influential aspect which determines a premium. Although some accidents are unavoidable, a person’s record will show how many tickets and accidents they have which will show a person’s driving habits. The more violations or at fault collisions a person has the more that insurers view them as a potential risk for future losses.
Age is another important thing that can cause a difference in cost. A 16 year old undoubtedly has far less experience behind the wheel than a middle aged woman and therefore is looked at as far riskier. Gender plays a part because males tend to be more aggressive drivers than woman and thus are charged a bit more. Types of automobiles to be insured are also used for rating for various reasons. If a person were to purchase a comprehensive policy on a vehicle that is prone to theft they can expect to pay more for protection.
Place of residence has a few reasons that may reflect what a person will pay for coverage. First is the number of vehicles on the road; the more autos the more likely the chance of a collision. Crime rate in a person’s area affects comprehensive pricing because it raises the chances of the insured cars of being stolen or vandalized. It is important for individuals to understand what affects their premiums in order for them to compare different options and should check with the California Department of Insurance for tips before signing on the dotted line.