How Does The Insurer Determine How Much You Will Pay? 3 Decisive Factors
Every car owner takes out an auto insurance policy to protect themselves and their vehicle from what might happen if they get involved in an accident. Even so, one of the questions people ask about auto insurance is how the insurer determines how much their client pays. To shed light on this, here are some factors that determine how much you pay for vehicle insurance:
Your Driving Record
Among the first things the provider will do when you request a quote is check your driving record. They aim to establish what type of driver you are on the road. Thus, if your past driving records are clean, they will give you a lower premium amount. This is because a clean past driving record shows that you are a careful driver and, therefore, less likely to cause an accident. On the other hand, if you have a problematic driving record, including offenses like DUIs or disregarding traffic signs and lights, you will likely have a harder time getting low-cost premiums. The reason for this is that insurers consider motorists who have caused accidents before to be a risk.
Your Car Model
Some automobile owners may be inattentive to the fact that their car model plays a crucial role in determining their auto insurance rates. If you have a new car, chances are high that it is fitted with more advanced and effective safety features. For example, vehicles with lane departure warnings, blind spot detection and protection, plus various older-generation safety features, are more attractive to insurers. This is owing to the features minimizing the likelihood of getting into an accident. Some safety additions can also lower the damage your vehicle would suffer in case of an accident. As such, some vehicle models might be more attractive to the company and attract affordable auto insurance premiums than others.
Your Location
Your neighborhood can also play a role in determining how much you will pay to insure your vehicle. If you live in an area with a higher likelihood of getting into an accident, the provider will charge higher insurance rates. Similarly, the insurer might charge more if your neighborhood is unsafe because of the raised risk of vandalism and car part theft.
Your insurance premium amount will depend on your personal and vehicle characteristics. Accordingly, you should speak with a trusted broker and understand the different products available in the market before selecting one. This will help you get cost-efficient coverage.
Contact a local auto insurance service to learn more.
