Everybody wants to save money, so why not reduce your truck insurance costs? Let me show you how premiums are calculated in a moment. First…
Insurance rates, Einstein and the Theory of Relativity
It took nearly 200 years for Sir Isaac Newton to come up with his famous formula, E=mc2. What does auto insurance have to do the theory of relativity? You don’t have to be Einstein to understand how vehicle insurance premiums work.
Here are 11 ways that an Insurance company can determine how much your premium will cost. You may not be able or able to change some of these. However, you have many options. After you’re done, feel free to contact an insurance company for any questions.
1- Age: How old are they driving? It is common knowledge that young drivers have less experience in the real world than other drivers, so they will be more expensive. It is only for a few more years. Your rates will drop dramatically once you turn 25. Drivers younger than 18 years old cannot get their own insurance policy. They will have to be added to an insurance plan. They can then get insurance on their own after they reach 18 years old.
2- Sex: Are they males or females? Statistics show that male drivers are more likely to be involved in accidents than female drivers. We are sorry for the unfortunate news, guys.
The Vehicle’s information, including year, make and type of vehicle: You don’t have to be an Einstein to understand this. It is obvious that an older model car will be more expensive to insure. A more expensive car will be more expensive than one that is less costly, while a sports car will run more than a sedan. Foreign cars are more expensive to insure than domestic vehicles, it is true! You can save as much money on insurance by choosing a Domestic, 4-cylinder, 4-door sedan or minivan. You will need to insure a 2 door hot rod if you are looking for a red hot rod.
4- Address: Did know that your home address can affect your rates? If you live in an area with more thefts, accidents and claims, your rates will go up.
5- How many miles are you driving each year? It makes sense that more miles you drive, the greater your chances of getting into an accident. You will also pay less if it isn’t driven as often.
6- Deductibles. The higher your deductible, the lower your rates. If you select a $250 deductible, you will be charged more than if a $1,000.00 was chosen. This is not rocket science, folks. If you’re a safe driver and feel confident in your ability to drive safely, then you should choose the highest deductible you can afford.
7- Driving record: Teenager drivers pay more because they are less experienced on the roads. There are many other factors that can increase your rates. Are you a victim of recent tickets? The parents’ driving records will have an impact on how much premiums rise. Parents who have been in accidents or tickets will pay more than those with a clean driving record.
Your driving habits can have a significant impact on the monthly premiums. Be a defensive and safe driver.
Lastly, compare rates from different companies. Each insurance company will have its own auto insurance rate schedule. It makes sense to be a smart customer and compare your pricing. Remember to compare apples with apples.
