Congratulations! You just bought the car of your dreams. All states require that car insurance be purchased and maintained during ownership. Insurance quotes may vary from one company to the next. There are some factors that you can control and others you cannot. Understanding how insurance quotes are calculated will help you get the best rate and coverage.
The driver’s age is one factor that cannot be controlled. A new driver is more risky than an experienced driver, according to common sense. A driver in their 20s or 40s would be charged a higher premium than someone in their 40s. Older drivers, who have slower reaction times, would also pay a higher premium. The ideal age to drive would be between 35 and 55 years. Anyone younger or older would pay more.
Insurance quotes are also influenced by gender. Insurance companies consider female drivers to be safer than their male counterparts statistically. Female drivers are therefore paid less than their male counterparts.
We can’t control certain factors like traffic tickets or accidents. A ticket can be considered a violation of the law and could lead to an accident. This is a violation of law that insurance companies will not cover and they will charge the driver higher rates. The driver may also be penalized for having a pattern of conduct, as accidents can indicate a pattern.
Insurance quotes will also be affected by where you live. A rural location puts the driver at a lower risk of theft or accident than a person who lives in a big city. With very few exceptions, urban drivers will pay more than rural drivers.
You want to drive a Porsche 911 Carrera. It will cost you. Your insurance premium will go up the more valuable your car. This logic should be apparent.
Car insurance companies now look at your creditworthiness. Are you a high-risk driver? Do you have bad credit or none at all? You are considered a risk by insurance companies and may be offered higher insurance rates. Your credit score will be checked to show insurance companies that you are financially responsible. You will be able to pay lower premiums as a result.
You may be at greater risk depending on your occupation. Your quote will be higher if you have to drive long hours or in dangerous conditions. Lower premiums will be awarded for less driving and more exposure to high-risk jobs. You should also limit your annual mileage. You are more at risk for an accident if you drive more.
It is possible to reduce the risk of vehicle theft. Many companies will offer a discount if you have better vehicle security. A vehicle alarm or other approved anti-theft device is usually eligible for a discount. These devices may be required by some companies before they will offer a price.
Companies will consider drivers who have completed a defensive driving course. This is a commitment to safer driving which results in lower premiums.
These are only guidelines and prices can vary between companies. One company might consider a high-risk factor, while another company may not. Keep your credit clean, drive safely, and make sure you have a budget.