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insurance
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In the insurance world, who you really are have an impact on the car insurance rates that you end up paying. Car insurance rates are based on various factors, some of which are under your control and others which are regrettably out of your control. For example, statistics show that a 16-year-old teenager driving a 300hp sports car is highly likely to be involved in an accident than a 35 year-old matured married man with a minivan or family sedan, both driving in the suburbs.
This is just an overview of how insurance companies think. Because you cannot change such factors such as your age, there are certain things you are able to do to reduce the premiums and keep them down. Some of the factors that are beyond your ability, but have an impact on your rates include:-
- Age - No matter how you look from the outside, the youngest and oldest drivers are highly likely to be involved or cause accidents.
- Gender – Statistically, women are perceived to be safe drivers but what is not known is whether it’s because of less NASCAR fantasies or mothering instincts.
- Marital Status – well, this is somewhat under your control because you are able to change your marital status from single to married, but so far no reports have been forthcoming of people who get married because they want to reduce their insurance rates.
Factors that are within your ability and which also impact on the rates of your car insurance:-
- Geographical location – Where you live really matters in the insurance world. It’s believed that living in the rural areas is less likely to subject your car to theft and you’re less likely to cause a collision. At times, simply moving across the street can greatly change your car rates.
- Type of car – If you drive a Ferrari Testarossa or a Cherry red Corvette, you should be ready for high premiums.
- Driving abuse – running red lights, speeding tickets, failure to yield among others all have an impact on your premium
- Accident claims – even though you can do nothing about your past, maintaining a clean slate will put you in an advantage over many fender benders.
- Credit score – insurance companies believe that a poor credit history or no credit history at all has a potentially higher risk.
- Occupation – as unbelievably as it may sound, insurance companies have found a link between your occupation and risk level. Makes sense that a pizza delivery person is a higher risk driver.
More factors that determine premiums include:
- Miles driven per annum
- Distance to work
- Use of the vehicle whether personal or business
- Occupation
- driving experience years
- Whether or not you have auto insurance currently
- Theft protection devices installed (a chance for discounts)
- Multiple drivers and cars (another chance for discounts)
It can be quite confusing when trying to get the best yet most affordable car insurance coverage. Like anything else today, do your part of research, seek sound advice and don’t underestimate the power of comparison shopping.
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