Factors Affecting Every Car Insurance Quote

Insurance companies rely on a variety of factors to determine how much you have to pay for a particular policy. Understanding how insurance companies calculate premiums can help you find a policy you can afford. Every time you get a car insurance quote, the following factors are used when setting your rates.

Driving Record and Claims History

Two of the most important factors considered by insurance companies are your driving record and history filing insurance claims. Insurers reward good drivers with lower rates because you do not pose as much risk as drivers with speeding tickets or those that have caused accidents. If you have a history of filing claims for even minor damage to your vehicle, you can expect to pay higher premiums. Depending on the extent of your claims history, you might find it difficult to get coverage at all because insurers are not willing to assume risk with you.

Credit Score

Another major factor that influences your premiums is your credit score. Insurance companies believe that people with good credit scores are better drivers. Because they are financially responsible individuals, drivers with good credit take precautions to avoid accidents and stay safe on the road. They do not want to spend money unnecessarily when it is easier to simply avoid accidents by driving safely.

Age and Marital Status

Even though you have no control over your age, insurance companies tend to reward middle-aged female drivers with the lowest rates. Young drivers have the highest rates because industry experience shows they are the drivers most likely to break driving laws and cause accidents. Marital status is also a consideration. Married drivers get better rates than single drivers. Because they are likely to have passengers, married drivers tend to be more cautious when driving which makes them safer drivers.

Make and Model of Vehicle

Older vehicles get lower rates mainly because drivers do not purchase as much insurance. The exception is with classic cars which can cost more to insure. Insurance companies give discounted rates to owners of newer vehicles because of the safety features including air bags and automatic seatbelts that come standard on such vehicles.

Type and Amount of Insurance Purchased

Clearly, what you plan to purchase in terms of coverage has an impact on each car insurance quote you get. A car insurance quote for a liability-only policy is much cheaper than one for a full coverage policy. Drivers who want higher policy limits will pay more in premiums.

Amount of Deductibles

If you are willing to pay higher deductibles, you can expect to have lower premiums. The more financial risk you are willing to assume yourself, the more insurance companies reward you with better rates. Many drivers want low deductibles because it is difficult to know if you will have the money available to pay the deductible at any given point in time.

Home and Work Location

Where you live and work factors in to your insurance costs for several reasons. Drivers with long commutes to work put more miles on their vehicles so they will pay slightly higher premiums. If you park your vehicle in an area that has a high property crime rate, expect to pay higher premiums as indicated on the car insurance quote.

» Basics of Getting a Car Insurance Quote

You need to have specific information available to get an accurate car insurance quote. Learn about the basics of getting and comparing quotes so you can find a policy that meets your needs.

» Glossary for Understanding a Car Insurance Quote

Understanding a car insurance quote requires knowledge of specific terms. Use this glossary to consider quotes so you can determine which one offers the best value for your money.

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Use tips from experts to find a car insurance quote that is affordable and provides excellent benefits. There are specific actions you can take to locate incredible deals that include lower premiums.

» Factors Affecting Every Car Insurance Quote

Discover the factors that have the greatest impact on a car insurance quote so you can take steps to mitigate negative factors while leveraging positive ones to get the best policy.


» How Gender Affects a Car Insurance Quote

Insurance companies include gender among the various factors used to determine policy premiums. Since you have no control over your gender, it can be frustrating if you are being penalized for being male or female. By understanding how gender affects every car insurance quote, you are better able to find great deals on quality policies.