6 Factors That Affect Car Insurance
Check the following 6 factors that affect car insurance and visit our website to get online insurance quotes auto!
- Your driving history. When companies start the underwriting process, they want to know what type of driver you are. In particular, they are interested in the recent 3-5 years driving history and if you committed any traffic violation during this time. Claim history is also analyzed, since the company will be interested to know if you caused any financial losses to either them or another insurer. Then, your risk class will be assessed and the company will begin determining your insurance cost.
- The type of car you drive and its technical specification. The car you want to insure will influence greatly the costs. The company will ask to provide exact info about model, make, value, full ownership and other related questions. Furthermore, you will be asked about the existence of aftermarket equipment. For customized cars it is a bit harder to determine the insurance value.
- Safety rating. Your car safety rating also influences the costs. In order to increase the ratings, many drivers install aftermarket safety devices and tracking systems. Of course, they must be first approved by the insurer.
- Credit score. More and more companies use the credit score to rate their clients. It may seem unfair, but customers who can handle their finances better are considered more responsible and in return, they get better rates.
- Marital status. Official data show that married persons are less likely to cause an accident. And since insurance companies work with statistics, they provide a more relaxed coverage cost to their married customers.
- The place where you live. Demographic and economic aspects of your neighborhood also influence the insurance costs. Living in a densely populated area increases the chances of being involved in an accident. Also, unemployment and the cost to repair a car in your neighborhood will influence the rates.
Visit us for more info. Click here!