Auto Insurance Premium: The factors That Affect the Price
Auto Insurance can be somewhat complicated to understand. There are many factors that can cause your auto insurance premium to go up or down. Your age, gender, marital status, type of vehicle, whether you own a home, and safety ratings, are a few things that are taken into consideration when insurance companies rate your auto policy.
However, two of the most influential factors insurance companies consider when determining premium are your driving record and credit history. A driver with a good credit history and no violations on their driving record will likely pay less for auto insurance than the contrary.
Statistics also show that individuals under the age of 25 have a higher risk for accidents and driving infractions than older drivers. Therefore, their rates will reflect the greater risk. Insurance Companies also believe that individuals who are married and homeowners show sense of stability. Therefore, they might receive more favorable rates than someone who isn’t married and doesn’t own a home.
Some of these factors may seem unfair. Allow Compass Insurance Services and IB Insurance to help shop your auto insurance policy. Do you feel you are paying too much? Has your current company mishandled a claim? Maybe you just want to see what other options are out there. Give us a call. Our team would be happy to help.