Lowering Your Car Insurance Rates

Insurance companies take a large amount of factors into account when calculating car insurance rates. Everything is based on statistical probability and although many of the issues may not seem to make sense; a lot of research has gone into determining how they affect your probability of filing a claim.

Your age is important. Drivers under the age of 25 are most likely to have an accident and those between 50 and 65 have the safest driving records.

Women are usually considered safe drivers and pay lower car insurance rates, although with more women driving now, this is being rethought.

A married person will pay lower car insurance rates than a single person with an identical driving record because married people are presumed to be more responsible because they have others to think of.

Where you live makes a difference to car insurance rates. Those living in low traffic areas where accidents are less likely to happen and those in neighborhoods with low car theft rates will pay less than those living in higher risk areas.

A bad driving record (speeding, DUI etc.) will affect how much you pay for insurance because you are a higher risk. However, as your driving record improves, you can ask for this to be taken into account when calculating your premium.

The type of vehicle (not just the cost) affects your car insurance rates. An expensive sedan with a lot of safety features will cost less to insure than a fast sports car of the same price.

Not having filed for claims for a long period will reduce your insurance costs as you are presumed to be a safe driver.
Insurance companies often check your credit rating because a high risk score means the person may be a high risk driver who takes chances and is more likely to have accidents.

Your occupation affects your car insurance costs. The more you drive, no matter how good a driver you are and how clean your record, means a greater risk of accidents. A pizza deliveryman will be a higher risk than a secretary who sits behind a desk all day.

Your insurance costs are affected by how educated you are. Although this may seem unfair, studies have shown that the more educated a person is, the more aware he is of the consequences of actions and risks and so the chances of he or she having an accident are less.

Having multiple cars and drivers covered by the same policy can reduce your car insurance rates as the insurance companies usually pass on the savings in administrative overheads to you.

The greater the theft protection devices installed in your car the lower the chances of it being stolen. This is reflects in the discounts that insurers offer for cars with extra theft protection.

Your years of driving experience affect how much you pay for insurance. This is not to be confused with your age. A person of 40 who has been driving for 10 years will pay higher car insurance rates than another of the same age who has been driving for 20 years – subject, of course, to that person having a good record.

Some of these factors you can do something about and some are beyond your control. But it’s always useful to know the range of issues that affect how much you pay for car insurance.

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