ifydcat When looking for a great deal on auto insurance, you need to know what is being offered by insurers, but you also need to understand your own risk factors. Insurance companies rate you according to a set factors, some of which change over the years. Know where you fit now within their risk calculations. You may be able to improve your standing and get a better rate.
There are at least eight factors taken into account by an auto insurance company when they set your rate. Your driving record is the first and most important one. But if you had an accident and claim 5 years ago, you may have now passed their requirement for a lowered “good driver” rate. This varies between 3 to 5 year for most companies. You want to know a company’s requirement before you sign up. On the other hand, a speeding ticket may raise your premium substantially. Find out what a company’s rules are. How long does it take that speeding ticket to “go away?”
Another factor is the locality where you live. City driving has a higher accident risk than rural driving. If you have moved from city to country, you should get a lower rate.
Other factors: males get a higher risk rate, and married people get a lower risk rate.
Insurance companies set rates according to your age group. If you have passed from on age group into another, it will probably change your rate.
Your annual mileage is one of the important variables in setting your rate. The more you drive, the higher the risk. Most companies will offer you a discount if you drive less than 7500 miles per year.
Insurance companies rate specific makes and models of cars according to various risk factors. Safety features like ABS brakes and air bags lower risk. Likewise alarm systems and anti-theft devices lower risk. A car with plastic body is seen as less costly to repair than steel, and lowers your risk. If you have found a new car you want to buy, check with your insurance agent about how they rate that car. A higher risk car will add to your insurance premium as long as you own it. It could make you reconsider your choice. Sports cars, above all, are considered high risk and draw a higher premium. On the other hand, a car with a low risk rating will save you money every year.
Another variable factor in your risk rating is your payment record. If you have ever missed an insurance payment, let your insurance lapse, or have had it cancelled, this will be seen as making you a risk financially, and will raise your insurance premium. Find out how long it takes to clear your record of any of these lapses.
Being aware of these risk factors by which insurance companies rate you can help you lower your costs in the future. You can take measures to get on the insurance company’s “good side” and earn a lower rate.
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