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If you're shopping for car insurance rates, the amount you end up paying could be determined by where you live and even your marital status. It's not an exact science, but many carriers look at a number of factors before assessing how much drivers will pay for their premiums. Here are several of the most common considerations.

What Helps Determine Car Insurance Rates?

1. Gender

According to data from the Insurance Institute of Highway Safety (IIHS), male drivers are more likely to drive faster, without a seatbelt, and engage in other risky driving habits. As a result, they are more likely to be involved in accidents. Car insurance carriers take all of this into consideration and may charge men higher rates than women.

2. Geographic Location

Where a person lives is one of the widely-used factors for setting rates. Carriers will typically look at a person's zip code to determine if the area is more rural or metropolitan. Communities with higher populations may generally have a higher concentration of accidents and insurance claims. Geographic location can also reveal the data for vehicle theft and other related crimes. Based on their research, insurance providers will then determine rates accordingly.

3. Marital Status

car insuranceA study by the National Institutes of Health found that married couples are less likely to be involved in car accidents compared to single people. Based on data collection, this is because married couples are generally less active and don't spend as much time driving as their single counterparts. Car insurance rates may be lower, depending on the type of coverage provided.

4. Credit Record

If a driver has a low credit score, they might be susceptible to higher premiums. Some carriers look at an applicant's credit score and history to review any patterns of late payments. Other car insurance providers view persons with lower scores as more likely to file more insurance claims. In certain cases, the applicant may be required to pay the full annual or semi-annual amount of premiums up front.

5. Driving Record

Good drivers with clean driving records are generally rewarded with lower car insurance rates. This includes no traffic infractions, DUIs, and speeding tickets. Drivers who are involved in multiple accidents could end up paying more for their premiums.

 

If you're seeking a better deal than your existing plan, let the team at David R Johnson Insurance in Beech Grove, IN, help you. The experienced and friendly team of State Farm® agents is 100% committed to getting you a budget-friendly and comprehensive car insurance policy. To get started, call  (317) 782-8858 or visit the website for extensive information on protecting your vehicles.

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