Factors That Affect Your Car Insurance PremiumWritten by Jon Register
Many factors affect premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher risk associated with a person, more he or she is likely to pay for coverage. We have elaborated on some of risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using vehicle (commuting to work, using for work, leisure only), etc. Factors you CANNOT easily change that affect your car insurance rates: . Age Statistically, drivers under age of 25 are at greater risk of being in an accident than those over age 25. Drivers between ages of 50 and 65 generally have safest records. . Gender Women are statistically safer drivers. . Marital Status A married person will pay less than a single person with an identical driving record. Factors you CAN change that affect your car insurance rates . Geography Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium. . Driving Violations Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when incident occurred. However, keep in mind, as your record improves, your premium will get lower. . Vehicle Type El cheapo car will cost less to insure than that status symbol SUV sitting on 24" rims baby.
| | Is Your Auto Insurance Company Rated?Written by Jon Register
Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for same coverages? Choosing best insurance company for you is a crucial financial decision. Does your insurance company have financial strength to safeguard you and your family? If company cannot pay future claims or benefits, other issues become far less relevant. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in marketplace. Standard & Poor's Ratings (http://www.standardandpoors.com) Financial strength ratings of insurance companies, plus detailed financial Insurer Profiles on nearly 4,000 companies. Fitch Ratings (http://www.fitchratings.com) Financial strength ratings of insurance companies. Have you heard of company where you are considering purchasing coverage? Do you have any experience with company? Ask your peers what experiences they have had. What is your sense of reputation of company? How quickly and easily are claims processed? Is there 24-hour claims service? Is claims management in house of insurance company or have they outsourced? Auto insurance is meant to make you whole in case of an accident with injury or property damage. It is to protect your assets and protect you from liability. You will want peace of mind of a superior rated company when it comes time to manage and pay claim. The financial health of a car insurance company is an often-overlooked area when shopping for best auto insurance rate. It is human nature to make your comparison solely on rates for coverages. While this is certainly important, you should be aware of company's overall rating and level of satisfaction. Consulting insurance company ratings is crucial. Each company issues quarterly reports that are publicly accessible. You cannot always tell future from past. However, past performance is a valuable insight into what expectation to have for your future coverage. One of factors that are used in order to determine companies' ratings is how long they have been in business. If there is no history, you may be taking an unnecessary chance. Look for a company that has a history and make sure that history shows good performance.
|
