7 Things Insurance Companies Consider When Calculating Your Insurance Rates

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If you know what car insurance companies take into consideration when calculating your insurance rates, you might stand a better chance of finding more affordable coverage. It isn’t just about your driving record or age. There are numerous factors that come into play when you apply for auto insurance coverage. Here are seven of them to help you determine the best coverage, deductibles, and limits at the most affordable price.

1. Safe or Reckless Driver

It isn’t just about your driving record, but your driving record plays a crucial role in determining how insurable you are. If you have been in several accidents and received moving violations recently, you are a higher risk to an insurance company. The odds suggest you have a greater likelihood of being in another accident. Consequently, your premiums are going to be more, because you have a greater chance of causing the insurance company a loss.

2. Your Age

It isn’t just about your age, either, but the longer you’ve driven the more experience you have behind the wheel. Even if you attended the best driving school in the country, you still have not developed the anticipatory and reflex skills an experienced driver has to avoid an accident. This comes in due time. In the meantime, the younger you are, the more you’ll pay for your insurance. The older you are, the more you’ll pay as well, as elderly drivers also cause numerous incidents on the road.

3. Your Gender

Although you gender should not be held against you on the job market per the Equal Opportunity Employment Act of 1972, it might be held against you when looking for automobile insurance. According to CarInsuranceCheap.net, male drivers tend to be more reckless than female drivers are, despite the age-old stigma attached to women drivers. Consequently, if you’re a male, and a young one at that, you may find yourself paying more for insurance.

4. Location

In real estate, it’s all about location, location, location. However, did you know that’s also the case when it comes to affordable car insurance? You might think that insurance companies are in business to protect you, but the truth be told, they are in business to protect themselves. If you live in a rural area where cars aren’t stolen and you stand little chance of being in an accident, your premiums might be lower than if you live in the big city where there’s tons of traffic and auto theft.

5. Your Car

You pay attention to the results of a car’s safety test ratings and so do the auto insurance companies. If you purchase a vehicle that received excellent results when crash tested, you will likely pay lower insurance premiums than if you purchase a sports car known to crumple in a wreck. Your vehicle’s value is also accounted for. The more expensive your car or truck, the more expensive to replace it, and auto insurance rates will reflect this expense.

6. Your Driving Pattern

If you fight your way through traffic to and from work every day and then head out of town on the weekends, your insurance premiums will be higher than if you hardly drive and only use your vehicle occasionally. How often and how far you drive your car also affects your policy payments, because the more you drive your vehicle, the greater the chance you will be involved in an accident. If you are an occasional driver, you might save money with a low-mileage policy.

7. Your Previous Insurance History

Don’t get this confused with your driving record, because they are two separate things. If you have always been responsible and insured your vehicles from the moment you bought your first one, an insurance company may consider you less of a risk than someone who has had gaps in his or her coverage. Driving with gaps in insurance coverage shows insurance companies that a person is not afraid to break the law. If you’re that driver, your behavior is going to cost you.

These are seven factors that will affect the rates for your automobile insurance. Take into these seven things in your life, and then use a quality comparison tool to find the best coverage at the least expensive price. This saves you the time and frustration of calling a list of companies.