10 Personal Factors Affecting Auto Insurance Prices

A few things that affect car insurance premiums are personal. People’s preferences and changes in their life determine what coverage they should have and how much they need to pay. Therefore, you have pretty good control over the costs as even small adjustments can save a lot of money. Here are some of the individual factors and what you can do about them to reduce prices and improve coverage.

  1. Driving History

No matter what the other indicators say, a clean driving record is a clear proof you are an attentive driver and less likely to cause accidents. If you have a speeding ticket, this is an obvious indication that you like speed which could cause you to have an accident one of those days. This information is readily available to automobile insurance companies by checking your MVR. You can reduce premiums as much as 40% by keeping a clean history without traffic moving violations and accidents. To achieve this, you need to be mindful of the state rules and regulations. Watch out for speed and red light cameras and watch speed limits.

  1. Credit Records

Underwriters are now looking at other risk indicators that may have nothing to do with driving. They develop insurance ratings to figure out the likelihood of claims by looking at how you handle your financial affairs. There is overwhelming evidence that there is a correlation between claims and credit score and most states allow inclusion of credit scores in premium calculations. So, looking after money matters attentively can allow you to maintain a good credit score.

  1. Family

Your spouse’s and children’s history will affect the rates offered to you. Most insurers would want to know about everyone who is at driving age and lives in the address listed. Families are encouraged to look at the options carefully when they are arranging coverage. They can save a considerable amount of dollars by taking advantage of multi-vehicle or multiple-policy discounts. Furthermore, you may have an option to exclude a family member with a bad record and stop their influence on costs, if it is allowed.

  1. Education, Profession and Membership

Some companies offer better rates based on education or profession than others. Engineers, fire-fighters, army personnel and academic teaching jobs are some of the professions that qualify for discounts. If you have a membership to AAA, AARP or Costco, you should check if you would get a better deal with a membership discount with insurers working with these organisations.

  1. Home Ownership

There is no secret that companies like motorists who own their own home. You can get further savings by combining home and auto insurance. Also, you would probably need a good level of liability coverage when you have assets that will encourage third parties to sue you after an at fault accident.

  1. Vehicle Ownership

The details of the automobile you choose are one of the main factors in determining vehicle insurance prices. If you own a vehicle that is considered safe and secure you are likely to be offered low rates. Companies like anything that will reduce risks of accidents and theft. Good cars do exactly that by reducing injuries to passengers and deterring auto thieves. On the other hand, if you like flashy and fast cars you may have to pay more to insure them. You can save a lot of money by paying a little attention to the automobile you are going to purchase. This is especially true when you are insuring a young driver.

  1. Driving Profile

How automobiles are used affect auto insurance rates. If you are mainly taking public transport to work and your car is sitting at home, you are working from home or a homemaker, you should talk to your agent. As a general rule, motorists traveling less every year get lower premiums. Another good example is retired people who don’t have to commute anymore.

  1. Zip Code

Car insurance rates have to be adjusted based on where you live. Generally, people who live in city centers, high vehicle crime areas, natural disaster zones, high congestion and traffic accident locations pay higher premiums. So, where you set home can increase or decrease rates a lot.

  1. Basic Personal Information

Age is a very important factor in determining how much you would be charged. For example, If you are a young driver you will probably be charged high vehicle insurance premiums. Gender is taken into account as well. Ladies can get cheaper prices compared to male drivers. Perhaps, you could stay on your parents’ policy as long as possible if you are a young driver.

  1. Personal Preferences

It is not a direct factor like others above but preferences affect how much car insurance coverage you would buy and can pay. For example, if you are a risk averse person, you would want to have as much protection as you can and keep the deductibles as low as practical. In the opposite case, you may keep the costs low by carefully choosing only the coverage you need.

Being aware of available choices and their effects can result in good and cheap automobile insurance coverage. Keep these points in mind and see if they can help you in the short or long run.