Now I believe that the average consumer is not aware of the factors which make and alter your car insurance premium rates. Now it is commonly known these rates are calculated due to many differences, variables and factors. So it is imperative that the understanding is set in concrete for you to make sense of. If you do in fact want to achieve a low premium rate from your car insurance provider you should make the effort to understand the factors below which affect the premium rate of your car insurance.
Your future insurance institute and or company will undoubtedly look at your driving record, history to establish if you are a troublesome driver or not basically. The insurance company will look in-depth into such things as your At Fault accidents, traffic related incidents which are traffic violations in other words and what car-auto insurance claims you have made. If certain issues are found you WILL be paying a higher premium rate for you car insurance. Please remember that companies will only look at your driving record up and until three years previous. So after such times your records in their eyes can become relaxed and not frowned upon as much.
Other Insurance Cover
Your prospective insurance company will look into your previous existing insurance protection for any type of related insurance cover. They are basically conducting background research to determine if you are and or were a good client. In terms of premium payments, what claims did you make and certainly any other troublesome issues which your old insurance broker had with you. If the flags are raised by your previous insurance company you just may be in for an increased car insurance premium rate. It is also important to remember that if this company is your first insurance institute you will most likely pay more for car insurance until a reasonable insurance history is established.
Credit History NOW INCLUDED
It is my belief that a large majority of insurance companies are now taking into account the credit history and standing of its prospective clients. These insurance institutes are looking at your credit history and scores and how you have used your credit and for what. Time and length of your credit history will be evaluated to establish any existing debts and how your payments were this will provide them with an Insurance Score they use this to determine the likelihood of you paying your insurance rates on time. By paying your rates and bills on time, keeping a good credit record and history using your credit wisely will improve your insurance score.
Location, Location, Location
You can and may well be charged more or less depending on where you currently live and are situated. If you live in highly populated areas the risks and chances of car accidents are increased and this is what insurance companies will look at and factor into the calculation to determine your final rates. If you live in the cities you will be paying more for car insurance rates than if you lived in a small suburban area.
The Car Itself
New vs. Old, a new car will often be more expensive to insure than an older vehicle model. With today’s revelations in technology and safety measures cars are becoming more expensive to build, own and sell. Newer vehicles are basically more expensive to repair and replace therefore the newer it is the higher your insurance rate can be. If you car has extra safety measures, car alarms, air bags, anything of the sort make sure you bring this up to your prospective insurance company.
Your future insurance company DOES care how much you will use the vehicle and for what purposes. Simply put, the more time you are on the road driving the more chance there is that an accident will or may occur this could be your fault or someone else but the fact remains the chances and risks are once again increased. So in the calculation this is a greater risk for the insurer.
Consumers must remember that the final car insurance rates are in the hands of the insurance company you are dealing with, you can only do so much to keep this at a minimum but at the end of the day it is out of your control in most respects.