8 Factors Often Overlooked that Affect Your Auto Insurance Rates

As you may know, there are many factors involved in the rating of auto insurance. Some of these factors are more commonly known than others. I鈥檓 going to help you better030-333 040-444 understand these factors by explaining some of the dynamics included in rating auto insurance.

Your Age is a Critical Factor in Determining Your Auto Insurance Rate

searching for better auto insurance ratesEvidence collected over the years discloses which age groups are most susceptible to accidents. So if you’re currently in an age group that’s factually proven as a high risk, you’ll likely face higher premiums. Any person under age 25 is more than likely to have higher rates than someone over 25. For example 16-year-old drivers have the highest driver fatality rate in the country, and fatal crashes are twice as likely for a 16 year old driving with passengers. This means that not just the driver is a risk, all of the people that are potential passengers are also seen as risks. Although this is typically true, not all 16 year olds are going to get into an accident, and there are ways to keep your rate lower.

If You Are a Male, Your Rates May Tend to Be Higher

Males are usually charged higher premiums due to the fact that most male drivers are considered careless and take more chances according to years of statistical data. Males also collect more speeding tickets than women and, on average, drive more miles. The more miles you drive the more chance there is of a risk. The number of miles driven annually also affects rates but we鈥檒l get more into CCIE 400-101 that later. Some of the male readers are probably thinking this is a gender-bias, but it's not, these are statistics. Every carrier follows different underwriting guidelines when determining rates. This is particularly true with gender-based statistics. So if you think your gender 鈥渏udgment” might affect your insurance rates, it’s in your best interest to shop around and compare prices.

The Type of Job You Have May Impact Your Rates

Occupation does play a small role in the rating of your auto insurance. Most people are unaware of this factor. According to statistics; scientists, pilots, and artists rank one, two, and three for having the lowest rates. Scientists, pilots, and artists meticulously pay attention to details, which,
SY0-301 exam in the insurance world, equates into safe driving habits. On the other hand, business executives and lawyers statistically pay the highest premiums. This high risk rating comes from the fact that people with those career types are more likely to be on the phone while driving and be distracted by work-related issues.

How Might a Traffic Ticket Affect Your Auto Insurance Rates?

Every company has a different policy when it comes to traffic tickets. Typically, drivers going more than 15 miles above the posted speed limit will see their auto insurance premium increase more than drivers who are ticketed for going only ten miles above the speed limit. Excessive speeding is linked to higher auto accident rates, which makes you a much bigger risk in the eyes of your car insurance company. Some carriers will raise your rates for 5 years, and some for 3 years. Even some non-standard companies will not charge you for your first and or only minor violation. For example a 21 year old girl received her first speeding ticket and also started her own auto policy, her ticket is on her driving record but will not affect her rate with certain non-standard companies. Driving record points play an important role in your rates or even denial through certain carriers. The more severe the violation, the more points are given. The number of points allowed is carrier specific. Not all States use a driving record points system, this does not mean you are less likely to have higher insurance rates.

How Claims Filed and a Coverage Lapse Will Translate to Your Rates

Claims; however minor or major will likely have an impact on your premium. The more claims you file, the more likely your insurance company will detect a pattern and potentially label you as a high risk driver. It’s a good idea to learn when to file claims, and when to avoid them. If, for instance, you file a claim under comprehensive (which protects against vandalism, theft, and weather), you’re less likely to have an increase in rates. But if you file a claim under collision or even liability, you may experience a more severe rate increase. Any Lapse in coverage has a greater factor than you would think. This is because people who have a higher number of lapse occurrences pose a greater threat to other insured drivers. If they are driving uninsured and something were to happen, the person actively carrying insurance is the one who is going to suffer, their insurance carrier has to pay out to cover the damages done by the uninsured. The more lapse occurrences a person has over time, the higher the rate could be and they are also more likely to be denied insurance by a Standard Company. Thus, if you have continuous insurance and more than a 30 day lapse in coverage you generally cannot receive insurance from a Standard Company. Even if you are completely unaware of any lapse, the company will verify this on your behalf. You’ll likely have to pay higher than normal premiums鈥昬ven if you have a spotless driving record and claims history.

Yes, Where You Live Will Also Impact Your Rates

The location of where you are either in a rural or urban area also plays a role in your insurance rates. Bigger cities have higher rates, due to a higher risk of occurrences. Certain areas of town are more prone to crime than others. The main factors included in location are; how densely populated is it, how the weather is, crime level, and road design and maintenance. Also, whether you park in a garage or park in the street plays an important part. If you park in the street you are more likely to be a victim of a hit and run or theft. Most people are completely unaware of these elements in Auto insurance, although your zip code is a very important aspect in home and other insurance policies.

Usually, the More Miles You Drive, the Higher Your Rate Will Be

The amount of miles you drive to work or anywhere can impact your insurance premium. The less you drive the less you are considered to be a risk. Although most insurance companies are not going to inspect your odometer, as long as you are fairly accurate compared to the insurance company’s estimates, you will be alright. If you routinely drive 14,000 miles per year, it is best to be honest so that you do not end up alarmed and with no coverage after an accident. These are just a few factors that most people, even agents, often overlook while quoting or shopping around for auto insurance. Hopefully this article has better informed you about rating factors in auto insurance and will be useful to you for future references and while shopping around to save money on your auto insurance. Another very easy way to find out what factors will likely impact your auto insurance rates is to call and talk to one of Cheap Insurance Tips's insurance agents. Their agents can quote your auto insurance with several companies and help you find the right coverage at a great price. Call today – 719.266.3457.

Categories: Auto Insurance


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