When you require car insurance, and you may be in a hurry or you don’t want to go through all the red tape involved, it may be tempting to choose the first and cheapest one that pops up in your Googles search engine. While it is a good idea to try and negotiate a decent price with the insurers, it is a good thing to understand why some insurance companies charge what they do because besides implementing things such as raising your deductibles or lowering your cover, that affect how much you will pay.
The numbers that the companies present to you are not some arbitrary numbers made up on the spot, they do their research based on all the information you have given them and calculate the costs accordingly. This article dives into these few factors, that are mostly out of your control, to give you a better understanding of the things that affect your end payments. This will, hopefully, make a more informed decision and you can get back to your google search knowing exactly what you want.
The items in question are:
1. Age and Gender
Statistically, according to some reputable sources such as the Department of Transportation, younger men typically have higher rates than women of similar age brackets, as the results show their number of crashes were higher overall, almost double the numbers in comparison. Recent studies were done between the years 1975 and 2018. In other words, the younger you are the higher your coverage rates. You can source these studies statistics online on this website.
Is another factor that will affect the premium. If you live in an area that is densely populated, the chances are the accident risk is higher than one with fewer residents in it. Along with this, also considered if the rate of car thefts in the area. The higher the risk area the higher your costs.
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3. Marital Status
According to a study done and written in the New York Times Magazine, it looks like the jury’s out; married people have a far less chance of accidents than single people and as such has a positive effect on auto insurance premiums.
There are a few different theories as to why this is the case, some of which revolve around driving less than single people and other sources state that it’s because they have more stable lives and tend to take fewer risks. Feel free to read about this study on their website https://www.nytimes.com/2010/04/18/magazine/18marriage-t.html?_r=1&pagewanted=all
This taken into consideration, your cars cover can be lowered by up to 15% if you are married. Sometimes you and your partner can also receive some perks for instance discounts when you combine both your policies. Known as a multi-policy discount.
Believe it or not, your job entails how much you will pay out of pocket for your vehicle’s protection. Okay, it may be obvious that many things are based on your profession, so you can bet your right dollar, this one will be too. But it may not be the thing your thinking. In this case, professions that require a person to be constantly on the road driving, for instance, a such as delivery driver, will be of a higher risk than one that goes to the office and doesn’t need to drive for the rest of the day till its home-time.
However, if you’re in a career such as a police officer or ambulance driver, the chances that you will be more careful on the road are high and will be considered and as a result, your costs will be less.
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The above influences are just a few of many other things that will predict that end number. Things from other categories such as, the size and age of your car, credit score, safety rating, your driving history, how many miles you drive per year, if you have had any previous cover and more are also added to the list, and it is safe to say that looking after your car, as well as your driving, should be an important consideration when it comes to comparing quotes from different sources.
The good thing is that there are many different insurers that you can inquire about and perhaps have an in-depth discussion with, firstly. And while you’re doing your search online, sources such as this policy review insurance site will give you some expert information on rates and you can do a comparison of different quotes from other sources, all in one place which should assist you in making your decision. The next time you search online, perhaps take a look at the list of items above and do your calculations in addition to a comparison of different quotes offered and then pick one.
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