Car warranty insurance prices depends on what factors?

Shopping for car insurance is frustrating. It’s tempting to get a reduced rate by raising deductibles or lowering coverage amounts. You might not realize just how many factors play a role in the price you pay at the end.

Understanding what factors can affect your insurance rate allows you to make informed decisions, as well as helping you know how to lower your expenses.

Demographics

You might be surprised to find that your age, gender, geographical location, marital status, and credit score affect your rates.

×          Age & Gender

When it comes to teenagers, statistics show that males have more accidents, so they tend to pay higher insurance rates. While in later life older women are more accident prone, thus pay a higher rate than elderly men.

×          Location

Most accidents happen near the home, so the area in which you live plays a big part in your insurance rate. If you live in a neighbourhood that is more densely populated, then you are at higher risk of collisions and theft.

For instance, Philadelphia and Detroit are the most expensive cities to insure cars, because they have high traffic and lots of uninsured drivers.

×          Marital Status

Single people tend to have more accidents, so for those getting married- their insurance rate can drop quite a bit. Though, it will depend on your driving history. If you are a male with a clean record who has never been in accident your insurance rate could be halved.

×          Credit Score

A lot of insurance companies use your credit score in determining your insurance premium. The lower your score the higher the premium.

×          Profession

Your profession and your risk of accident tie in. For instance, if you are a delivery driver, or someone else that spends a lot of time on the road you are more likely to be in accident. However, airline pilots, nuns, and paramedics tend to receive better rates due to the belief they are more careful drivers.

Car Related Factors

It’s not just you as a person that affects your rate, but also the car that you drive.

×          Safety Rating

The higher your car’s safety rating the lower your rate could be. The same can be said for a car with a low safety rating. You will pay more if the insurance company believes you are at a greater risk of an accident.

×          Size

Larger cars are perceived to be safer than smaller cars in the event of an accident. So if you have two vehicles with the same safety rating, the larger one will still be cheaper.

×          Theft Rate

Some cars are more susceptible to theft than others, and if your car is on that list will result in higher insurance premiums. Having anti-theft features can lower your premium, though.

Driving Habits

The most important factors, though, are your driving habits.

×          History

If you have a history of tickets, accidents, and previous claims then you are likely to pay more for insurance. However, if you can keep your record clean for a few years you will see it drop after three years or so. A DUI can have an effect on your premium for up to 10 years.