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Whether you’re looking to lower your monthly insurance payments or simply find out why your premium is what it is, the experts at Indy Car Financing have developed this handy guide to determining what affects your car insurance rates.
Demographic Considerations
Demographics play a large role in your car insurance premiums, There are some factors that can have an impact on your car insurance that cannot be altered or sometimes only apply to very specific groups. Some of these factors include:
- Gender and Age: Younger males tend to have higher rates than younger females because teenage boys statistically are involved in more accidents than teenage girls. However, older men usually have lower rates than older women, though the difference in premium isn’t nearly as large.
- Marital Status: While your previous driving history still plays a role, getting married can lower both you and your partner’s car insurance rates. This is because married couples tend to have fewer accidents according to statistics.
- Your Location: Where you live affects your car insurance rates. Densely populated urban areas elicit higher rates, while residents of rural areas with less traffic tend to have lower rates.
Car-Related Factors
Your primary vehicle can have a drastic effect on your car insurance rates. Car-related factors to consider include:
- The Safety Rating: If you drive a car with a high safety score, the lower your insurance premium will be.
- Vehicle Age: Since older cars are more likely to be “totaled” in an accident, they can be replaced instead of repaired, thus lowering the need for collision coverage. A new or newer car might have a higher premium due to the need for collision coverage.
Driving Habits
Fostering positive and safe driving habits early can save you money on your car insurance rates! These other important driving factors can affect your car insurance rates, too:
- Driving History: The number of accidents you’ve been in, moving violations you’ve received, and previous insurance claims made can all negatively impact your car insurance. However, time will ultimately erase these marks. If you can avoid these blemishes, you’ll notice your monthly premium go down.
- Vehicle Usage: Depending on what you use your car for, whether it’s commuting or for commercial reasons, your insurance company can alter your rates. Usually, this is based on miles driven and what you use your car for. The more you drive, the more likely you are to be in an accident, so the higher your insurance rates are likely to be.
With this information in mind, you should have a better idea of what affects your car insurance rates.