Have you ever asked your insurance agent how they calculate vehicle premiums? If you have not asked, you should. Your agent will likely explain many factors, including the following five. These five factors play more of a role in your vehicle's costs more than any other factors.
Some of the factors that affect your car insurance rates are things you cannot change or modify. Your gender is an example of one of these factors. Gender matters to insurance agents because it affects the likelihood of a person getting in an accident. Men tend to file more claims because they tend to have a higher chance of getting into accidents. As a result, male drivers pay higher rates than female drivers.
The second factor that may affect your rates is your age, and this, too, is a factor you cannot control. Insurance companies compile data from accidents, and they find that people in specific age groups tend to have higher accident rates. Generally, insurance agents place people into risk categories. A person under the age of 25 is automatically considered a high-risk driver, due to the statistical information that shows young drivers cause more accidents. If you are over the age of 25, you might pay less simply from statistical data that shows a lower rate of accidents for people in this age group.
Your Marital Status
Next, insurance agents consider a person's marital status. Single people pay higher rates than married people. Again, this occurs from statistics. Statistical information shows that single people file more claims than married people. Therefore, married individuals typically qualify for discounts on their policies due to their marital status.
The vehicle you purchase and insure also affects your rates. The main thing that insurance agents want to know is how much your vehicle is worth. Vehicles that are worth more will cost more to insure.
Your Driving Record
The last thing that matters to insurance agents is a person's driving record. A person's driving record helps the agent label the risk level of the person. People with clear records pay lower rates than people with a record of tickets, accidents, and claims.
These are some of the top factors that affect your vehicle insurance premiums. While you cannot change many of these factors, you can choose your vehicle and control your driving record. To learn more about auto insurance quotes, contact a local agent today.