What You Don’t Know May Cost You: 5 Things That Increase Your Premiums

Car insurance is one of those things that varies in price greatly from one company to another. There are a number of factors that can affect your car insurance premium that you might not think of off the top of your head. Keep these in mind when shopping around for your insurance quote to give a bit of an explanation of why your quotes and rates are the price you receive.

Type of vehicle

The make and model of the vehicle you drive has a large impact on what your insurance rate is. Insurance companies use published vehicle safety ratings to evaluate how safe a vehicle is, and they offer discounts to their customers who drive vehicles less likely to be involved in an accident. Insurers may increase rates for vehicles that are susceptible to theft too. Window tint typically doesn’t affect insurance premiums as long as it isn’t illegal in the state and conforms to the manufacturer’s specifications. According to Instant Windscreens, window tint may actually be helpful. It can protect your vehicle’s interior from damaging UV radiation helping it retain more of its value for longer.

How Many Miles You Drive

It makes sense that the more you drive the higher your automobile insurance rate is going to be. Driving more miles and further distances increases your risk of getting into an accident and needing to file a claim. You’re also likely to have a higher premium if you use your personal vehicle for business purposes. If you are using your personal vehicle for business, it may be worth it to look into separate commercial auto insurance. If you have an accountant, ask them about the cost versus the benefit of having commercial auto insurance for your vehicle. If you work for yourself, and you are the company, you’ll have to do the research yourself, but it’s worth your time to look into.

Driving Record

Your driving record has a direct impact on insurance rates. If you have a clean driving record without accidents, claims or tickets you’re considered a safe driver and may receive a discount. If you have moving violation tickets, such as a speeding or following too closely citation, you’ll be in a higher risk pool of drivers for rate purposes. Insurance companies consider people who have citations for risky behaviors to be at more likely to cause or be involved in an accident, which would cut into their profits. Keep vigilant and follow safe defensive driving practices. You can also look into taking a driver safety course to get a rate reduction if your insurance company offers the option.

Demographics

Insurance companies factor in your age, sex and marital status into your rate quote. Young males under 25 have higher rates, especially if they’re single. Insurance rates are almost always calculated in consideration of risk, and young, single male drivers are most likely to be in an automobile accident.

Where You Live

Believe it or not, the zip code where your vehicle is parked every night affects your insurance. If you live in a high-crime area, you’ll have a higher premium than a safer neighborhood. Rates can drastically change from zip codes right next to each other. It is probably not worth it to move simply to save some money on your insurance rates, but when moving to a new area, it may be a factor worth considering.

The factors for determining car insurance premiums take into account numerous criteria, including rating scales approved by the individual states. Keep these in mind when you’re shopping for insurance so that you aren’t surprised the next time you get a quote.