You will be more educated if you understand the factors that could affect the price of your car insurance. You will be better off in the long-term if you are more informed. Although some factors are beyond your control, they can help you save a lot of money.
Insurance rates are affected by where you live
Your address will be one of the first questions you answer when applying for car insurance. Your address and name are not required by insurers to get in touch with you. Insurers compile statistics from all areas, including crime rates and accident claims. Your ZIP code is a key factor in determining your car insurance rate. Although it may seem unfair, where you live will have an impact on the cost of your car insurance.
People assume that people living in large cities pay more for auto insurance. However, rates in rural areas can be higher. Car insurance rates can be higher for rural residents who tend to drive more. While you might not be in control of where you live, it is possible to be aware that your car insurance premiums will be affected by geography.
Car Storage
Your premiums may be lower if your car is stored in a garage overnight than if it is parked on the street. This disparity is due to the fact that many car thefts can be attributed to crimes of opportunity. It’s much easier to steal a car from the curb than it is to enter a garage. When calculating your policy, make sure you tell the agent if you have access to a garage or carport.
Auto theft rates in your area
Don’t be surprised if your car insurance bill includes statistics about car thefts and break-ins. Automobile insurers constantly compile statistics about car theft and property crime. Drivers in these areas often see higher premiums at renewal.
Rates can be affected by your education level
Although it might seem like your college experience does not have anything to do with your ability drive a car at first glance, actuarial studies show a correlation between accident claims and educational level. Many car insurance companies offer discounts to college-educated drivers, but force non-college graduates into paying the additional costs. It may be worth looking for a company that doesn’t consider your educational history in determining your premium rate.
What you do for a living
Your auto insurance premiums can be affected by the type of job that you hold. Actuarial studies also showed a correlation between certain job types and accident rates. Although it is unlikely that you will change jobs to get a lower premium, it pays to be aware of how your job may affect your rates.
Your credit score
Credit scores are important for loans and mortgages, but also for other purposes. When an applicant applies for car insurance, many car insurance companies will pull a copy from their credit report and credit score. You might want to look for a company that base its premium decisions on your driving record, even if your credit score is not stellar.
