10 Personal Factors Affecting Auto Insurance Prices

Quite a few things that affect car insurance premiums are personal. People’s preferences and changes in their life determine how much they need to pay and what type of a policy they should have. Therefore, you have a pretty good control over the costs. A few 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

More than anything else most vehicle insurance companies look at the driving records of applicants. No matter what the other indicators, a clean record is a clear proof. 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 whomever checks DMV license records.

You can reduce premiums as much as 40% by keeping a clean history without traffic moving violations. 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. Stay away from operating a motor vehicle when you are intoxicated under any circumstance if you don’t want to have a huge problem that carries on influencing prices as long as seven years.

  1. Credit Records

Underwriters are now looking to other risk indicators that may have nothing to do with driving. They develop insurance credit rating calculations to figure out the likelihood of claims by looking at how you handle financial affairs. There is overwhelming evidence that there is a correlation between claims and credit score and most states accept this fact.

You can save as much as 25% by having a good credit score. So, looking after money matters attentively is more influential on car insurance prices now. Not only it increases chances of finding low interest credit facilities like mortgages and auto loans but also auto insurers quote low premiums.

  1. Family

Family circumstances cannot be ignored when calculating quotes. If you are married you have various alternatives as to how policies can be arranged. A single person has only himself/herself to consider. Your spouse’s history will affect the rates offered. Most of them would want to know about everyone who is at driving age and live in the address listed.

Also children or parents will be influential. Parents would want to include teenage children on their policies that make the premium much higher. When they leave home or buy own cars and coverage you can take them off and get a large relief. Children can be insured by parents at more agreeable rates. Also, many of them would offer discounts to children of a current policyholder when they buy their own policies while they are still living in the same property.

Families are encouraged to look at the options carefully when they are arranging coverage. They can economize considerable amount of dollars by buying multi-vehicle or multiple policies from the same carrier including home plan. Furthermore, you may have an option to exclude a family member with bad records and stop their influence on costs. The state must allow this arrangement. Also, most of them would only exclude a driver if they have their own cars and coverage.

  1. Education, Profession and Membership Discounts

Some companies are more into offers 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. Some offer them while you are at the university and after graduation too. Failing all these, you may be qualified for around a 10% discount by buying roadside breakdown from one of the main independent providers like AAA.

  1. Home Ownership

There is no secret that companies like motorists with home-ownership, married and well educated. Many would give a discount if you own your own home (jointly or by one of the partners). You can get further reductions by combining home and auto plans. Also, you would probably need 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 automobiles you own are one of the main factors determining 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. 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. Most offer large discounts for a second auto that is used rarely. Classic cars are good examples but it is not limited to them. For example, you may be able to insure an older auto that is kept as a backup at reasonable cost. You can only operate one at a time, right?

You really 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. They are already considered high risk. You can exasperate the costs by buying a sports car for a youngster. Don’t do it if you have already got money problems.

  1. Driving Profile

How automobiles are used affect rates. If you are mainly taking public transport to work and it is sitting at home, you are working from home or a home maker talk to the agent. As a general rule, motorists traveling low miles every year get lower prices. Another good example is retired people who don’t have to commute anymore.

  1. Zip Code

If you noticed, the first thing they ask on a proposal form is the zip code. 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 as much as 50%.

Parking facilities can qualify for a discount too. When a vehicle is parked in a garage overnight the risks of theft, vandalism and other damages to it is lower. Off street parking facilities may be good enough for it as well.

  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 premiums due to being inexperienced. Gender is taken into account as well. For example, ladies can get cheaper prices compared to male drivers. However, there is not much you could do about it. Hence they are left to the end. Perhaps, you could stay on parents’ policy as long as possible.

Maybe, you could arrange to insure the automobile with an older relative to save some money. But not many people have a spare relative waiting to be used for insurance purposes. Besides, there are limitations like they must share vehicle ownership if they will buy the policy jointly. Also, they would be liable for accidents that you caused. It is not an easy one and may not be ethical either. However, a much simpler solution is to add them as a listed driver and that should give you a little bit of a relief.

  1. Personal Preferences

It is not a direct factor like others above but preferences affect how much 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 dropping some of coverage that are not going to cause you a financial ruin or keep higher deductibles.

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 terms. And let us help you by providing great quotes from highly reputable names.

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