We need car insurance to drive our vehicles, and these rates differ with every insurance company. When deciding the rate that you will pay, your insurance company reviews the information that you give. Depending on several factors, you might have higher or lower insurance rates. So what are these factors and what can you do to improve your car insurance rates?
According to TheZebra.com, there are nine factors that impact your insurance rates.
Age
This is the biggest factor on your car insurance rates. Those with the highest rates are teen drivers, and the rates get better and better as you get older. That is, until you reach your 60s, and then the rates start going up again.
Obviously, this is because your driving skills and abilities are lesser as you are first learning to drive. Insurance companies also see teens are more willing to be involved in risky behaviors, which means they are more likely to be in an accident. Your rates will start to go down when you turn 20, and then even more at 25.
Driving and Claims History
Your driving and claims history is one of the most influential factors to your rates. Your past history is often an indicator of future risks. And this means that any speeding tickets, DUIs, and reckless driving can cause higher rates. Frequent claims can also cause a rise in your rate. This includes any claim that you filed and claims others file against you.
Credit Score
Your credit score is a really big contributing factor to your insurance rates. According to TheZebra, “data shows drivers with poor credit file more claims than do drivers with better credit”. Your insurance rates can almost double in cost depending on your score.
Location
Insurance rates could also be different depending on your location. Some states have higher insurance costs because of their laws, like PIP amounts, which means you could pay more. Also depending on where you live, it could change as well. People who live in locations with extreme weather or dense traffic could have higher rates, especially if there are lots of claims filed in their area. Utah is on the lower end of insurance cost, but still in the medium.
Personal Demographics
Although they don’t hold as much weight, your insurance rates could still be affected by gender, occupation, and marital status. Teenage boys pay more than teenage girls, because boys often take more risks than girls while driving. Your marital status means that driving responsibilities are split between two people, and that means less individual claims. Depending on your job, you could have more driving responsibilities, that could raise your premium. Also, depending on what car you drive, you could have a higher rate. Cars with safety features and easy to fix features, as well as a car being paid off, will be better for your rates.
Coverage Levels and Deductibles
Depending on the coverage and deductibles that you choose, there could be a $1,000 difference in your rates. As much as you might want to choose lower coverage levels, it is important to get as good of coverage as you can. It is better for you to pay $1,000 a year for your coverage than pay even more for your and someone else’s vehicle in a collision.
Vehicle Types
The car that you drive can impact your insurance rates as well. Sports cars and luxury cars have higher rates, than a safer car, like a Toyota. Also, cars that are easy to repair are less to cover than cars that cost more. For example, Teslas, despite their safety features, cost more to cover. This is because their parts are not as easy to come by, and they cost more to fix in an accident. If you want a lower rate, look up vehicles that are safe and reliable.
Annual Mileage
If you drive more in a year than others, you will have a lower insurance rating. This means that if you travel for a living, the rate goes up. If you work from home or just travel around your neighborhood, then your insurance rates will be lower.
Ownership Status
Your car insurance cost will differ whether you own, leased, or financed your vehicles. Check with your insurance to see how it will affect your rates.
We all have to have insurance, so we should have all the information on how we affect it. You also should know how you can fully use the benefits that insurance provides to you. Do your research and figure out how your insurance will help you. Often people are scared to make a claim after an accident, but that is why you have the insurance. Your attorney and their team can help you take advantage of your insurance coverage as well.
Flickinger • Boulton • Robson • Weeks is here to help. We have over 150 years of combined experience representing personal injury victims. We offer free case evaluations to discuss how we can represent you. Call 801.500.4000 to schedule yours today.
