Car insurance rates can be a lot of things, but they are definitely not an exact science. There are a lot of factors that affect the final rate, so it is really important to shop around.
Car insurance rates are affected by a lot of factors. Some of them we can control and some of them we can’t. Things like gender, age and driving record play an important part when it comes to determining your rate. But there are lesser known factors that affect your premium:
1- The kind of car you drive
Sure, you can imagine that if you drive an expensive car, you can expect your insurance to be more expensive. But that’s not the only thing they take into account. Your insurance rate is also calculated based on the safety rating of your vehicle, its size and age, and the likelihood that it might be stolen.
This is why it is such a good idea to get insurance quotes before you make your final decision on a car.
2- Poor credit
Car insurance companies use some of your personal and basic information to calculate your rate, so they are basically keeping an eye on you. The most common factor that they use to calculate your premium is your credit score: the lower it is, the more you will pay.
But the good thing is that credit score, unlike age or gender, is something you can control.
3- Marital status
A lot of insurers consider your marital status when calculating your rate. Some insurers believe that married drivers are more responsible than single ones, so the rates might be lower.
4- Homeowner status
Being a homeowner can have a positive impact on your car insurance rate. Insurance companies believe that if you managed to buy a house, you are financially stable and, as a consequence, they trust you more and reward you with lower rates.
5- How and where you drive
Your driving record affects your insurance rate, we all know that. But there are some other factors that might play a part, too.
For example, the distance of your commute might affect your premium, because if you are on the road longer, your risk is higher.
Where you live and drive is also considered an important factor. Insurance companies will take into account vandalism records in your area, the number of claims and fraudulent claims, cases of vehicle theft, etc.