Main Factors Influence Car Insurance Premiums
- Main Factors Influence Car Insurance Premiums
- #Credit Card Score
- #Car Insurance Claim History
- #Driving Records
- #Continuously Choosing the Car Insurance Products
- #Location of Car Garage
- #The Ages of the Drivers
- #The Duration of Driving Experience
- #Brands, Models, and Types of Cars
- #Mileages per Year
In determining car insurance premium costs, each insurance company has different factors by using statistics that the consumers do not know.
But here are the main factors determine car insurance premiums.
#Credit Card Score
Several insurance companies will check your credit card score first. They want to know if you pay your credit card bill on time or not.
If you have problems with banks about loan money or credit card arrears, you will get car insurance premiums with expensive price. Or it is even possible that your car insurance application will be rejected.
#Car Insurance Claim History
How often the frequency of car insurance claim is more important than driving records. Most insurance companies have scoring schemes and give rewards to those who do not have a claim.
Insurance companies will also give additional costs or decrease the discount to those who often claim their car insurance. They will also check how often you claim in the past 5 years.
Negative records in both claim and driving histories will have impacts on the level of car insurance premiums given. On the other side, being a driver with great driving records will give you a discount.
For you who often drive your car by yourself, your driving record will also be car insurance companies’ considerations in determining if you are proper to accept car insurance or not.
The insurance companies usually will check your ticket records in the police or the attorney for the past 3 years.
Bad driving records combined with bad credit card score or bad car insurance claim history is the cause a person gets high rate car insurance premiums.
#Continuously Choosing the Car Insurance Products
Find the right and proper car insurance product. Because if you maintain insurance coverage which does not fit with your needs, you are spending a waste of money.
Moreover, each car insurance product has different car insurance premiums.
#Location of Car Garage
Whether your car is parked in the garage or on the side of the road will also influence the rate of car insurance premiums you need to pay.
It is because some areas have a high rate of car theft and car accidents than other areas, which will impact the increased insurance premiums.
For example, metropolitan areas or areas with a high rate of crime is also potentially subject to high car insurance fee as well.
#The Ages of the Drivers
The next factor that determines car insurance premiums is the ages of the drivers. It is the main factor if the driver is a person aged below 25 years old.
The younger the driver, the more expensive car insurance premium rates which need to be paid. If the young driver is the main driver, the increase in insurance premiums is able to be up to 3 times.
Data show that young drivers are at high risk of getting car accidents, damages, and injuries compared to older drivers.
Gender also has small impacts on the rate of car insurance, except for young people. Boys will pay more than girls especially if they are teenagers.
While for adults, gender will only a little bit influence the rate of car insurance premiums.
#The Duration of Driving Experience
The duration of driving experience are:
- Young drivers.
- The drivers who drive cars for the first time.
- International drivers who come into a foreign country.
Most car insurance providers companies will give additional costs to inexperienced drivers. The inexperienced drivers, in this case, means those who have less than 3 years of driving experience in the same country.
#Brands, Models, and Types of Cars
The production years and the models of the car are also the factors for the insurance companies to determine the car insurance premium paid. Some types of cars have a higher rate of security than other car types.
The premiums of sports cars and fancy cars are usually more expensive, because of the high amount of claims and the spare parts of those types of cars are also expensive.
Various safety features in the cars also influence the premium rates. Many insurance companies give a discount to those whose cars are featured with anti-lock brakes, airbags, and other anti-theft features.
#Mileages per Year
Insurance companies know that often driven cars are more susceptible to accidents. Some insurance companies offer a discount to people whose cars are still in low kilometers.
For example, a discount for new cars which are traveling under 10.000 miles per year. There are even car insurance companies that give more discounts for cars which are traveling under 5.000 miles per year.