There are different factors that influence the rate of your car insurance policy. Some of these factors you can control and others you cannot. It is important to know what these factors are and how they influence your overall policy before you buy car insurance. The factors that can influence your policy include:
- Gender and age – Statistics have proven that more young men are involved in accidents and older women are more often involved in accidents. Based on this, younger men usually have higher insurance rates than women of the same age group. Older men tend to have lower insurance rates than women of the same age.
- Area you live in – Highly populated areas have more cars which increase the chances of an accident. The area in which you live, the traffic there, and the crime rates of the area may also affect your rates.
- Marital status – Being married reduces the risk for accidents. Statistics show that married people have fewer accidents than single people. This is especially good for men because their rates can be halved once their married and have a good driving record.
- Profession – Your job could increase or decrease your rates. Delivery people, journalists, and some sales people are on the road all the time and will have higher rates. Pilots, people who work from home, and others who rarely drive will have lower rates.
- Credit rating – It is not a given that your credit rating may influence your insurance rate, but many insurance companies bring it into account. A lower credit rating may result in a higher insurance rate.
- Age of the car – Repairs for old and new cars are generally the same. However, old cars are more likely to be totalled as the costs to repair old cars often exceed the value of the car. Newer cars will not be totalled that easily and may have higher collision coverage rates because they are more likely to get into collisions.
These factors determine how your insurance rates are calculated. Your driving history also plays a role and if you are a safe driver with a good driving history, you may have lower rates.