Love it or hate it, you are required to hold insurance on every vehicle you drive…period. Now don’t go trying to run to another state to escape having to hold insurance coverage, as every state requires it. Now that we’ve gotten that out of the way, let’s say that you’ve got a good driving record and all of the added claimed factors that could mess up your insurance rates are absolutely in your favor. Yet, your car insurance is still high. . Yet your unemployed, accident prone, ticket collecting buddies across the US pay less for their car insurance?
Now, I know this doesn’t seem fair, but there are many factors that go into your car insurance rate. Some of it you can change and some of it you can’t change.
You can’t change:
- Your age
Dick Clark and Sophia Loren notwithstanding, aging is unavoidable. And while you may be a mature-looking teen or a youthful octogenarian, the oldest and the youngest drivers are far more likely to have accidents.
Whether it’s the mothering instinct or fewer NASCAR fantasies, women statistically make safer drivers.
- Marital Status
OK, you can change this, but there have been no reports of people marrying simply to lower their insurance rates.
You can change:
Where you live matters. For instance, those living in rural America are far less likely to have a collision or a stolen car than those living in a city. But, sometimes even just moving across the street can change your rate.
- Driving violations
Speeding tickets, running red lights, failure to yield, etc. all count toward your auto insurance rate.
- Your vehicle
If you must have that cherry red Corvette or the Ferrari GTO, be prepared to pay for it. Your insurance premiums will be higher.
- Accident claims
While you can’t change the past, keeping your slate clean and free of accidents will hold you in better stead than lots of fender benders.
- Credit rating
That’s right -” many insurance companies view having a poor, or even no credit history as suggestive of higher risk.”
A little easier said than done. Believe it or not, insurers have found correlation between your occupation and risk. Makes sense that the pizza delivery guy could be a higher risk!
Even when you think you have everything in your favor there are still a few other things that can affect your insurance rates such as:
- Miles driven per year
- Distance to work
- Years of driving experience
- Business use of the vehicle
- Whether or not you currently have auto insurance
- Theft protection devices (often results in discounts)
- Multiple cars and drivers (another opportunity for discounts)
Now that you are thoroughly overwhelmed, your best bet is to take your time and comparison shop. It will certainly pay off in the long run.