4 Important Factors That Impact Your Auto Insurance Quote
If you need to get a quote for car insurance, there are many different factors insurance companies take into consideration to determine your premium. Read on to learn about four of these factors.
Factor #1: Personal Characteristics
First, insurance companies can use a range of personal characteristics, most that are out of your control. For example, factors such as your age, education level, gender, and even marital status will be compared to statistics to predict how likely you will be involved in an accident. Insurance companies are allowed to set rates based on these characteristics and accompanying statistics.
Factor #2: Driving Record
Second, with insurance, your driving record matters. An insurance company will want to look into your history of accidents and your history of getting driving-related tickets and violations. Both driving-related statistics directly impact how risk you are to insure. Don't try to hide your driving record; they will underwrite your policy and determine if you have driving violations that you didn't share with them.
Factor #3: Insurance History
Third, they will want to know if you have ever had any lapse in insurance coverage. If you have ever had any lapses in coverage, that can increase your insurance coverage. Even if you don't have a vehicle, it a good idea to carry non-owner auto insurance as a licensed driver to protect you from rate increases from insurance coverage gaps. They will also look at your history of insurance claims with all vehicles over the past few years.
Factor #3: Where You Drive
How often you drive and where you drive will matter. If you have a vehicle, you only drive a couple of hundred miles per month; your risk is lower than a driver who drives a couple of thousand miles per month. When asked how much you drive on a weekly or monthly basis, be sure to give an accurate answer, as this can impact your insurance rates.
Factor #4: Vehicle Details
Next, the vehicle that you drive has a large impact on your insurance costs. After all, the car is what you are protecting with your collision and comprehensive insurance. Share the make and model of the vehicle, as well as the VIN. You should also know what type of safety features your vehicle is equipped with and share all this information with your insurance company, as they can help lower your insurance premium.
When it comes to putting together an auto insurance quote, companies look at a wide range of factors to determine your overall risk. Learn more by contacting various auto insurance companies.
