Car insurance companies take a number of factors into consideration when calculating coverage costs. This helps them determine the likelihood that you will get into an auto accident or have your vehicle stolen and need to file a claim. While some of the factors they look at are beyond your control, many others can be improved to help lower your risk level and obtain a better rate. Thus, you should understand what affects the price of your policy.
5 Aspects That Impact How Much You Pay for Car Insurance
1. Coverage & Deductible
When you choose to buy coverage above and beyond the state’s minimum liability, you can expect your policy rate to rise. The more types of coverage you add, the more you will pay. The deductible you set will also make a difference. The higher your deductible is, the lower your premium, and vice versa.
2. Type of Vehicle
The vehicle you drive will play a decisive role in your coverage costs in a variety of ways. Typically, the more your car is worth and more expensive it is to repair, the more it will be to insure. Providers will also take into account its safety rating and the features it has to help prevent auto accidents and serious injury.
3. Driving Record
Your driving history will have one of the biggest impacts on your car insurance rate. A clean record will indicate you’re a safe driver, and insurers will reward you with a lower premium. If your record shows any at-fault auto accidents or major traffic violations, your premium will be higher.
4. Credit Score
Many insurance companies correlate credit score and driving behavior. Because of this, they will review your credit to help them decide what amount you should pay for coverage. The belief is that the higher your score is, the more financially responsible you are and less likely to file a claim.
Where you live can also factor into how much your premium is. Living in a city that’s highly populated means there will be more drivers on the road, increasing the potential for auto accidents. Insurance companies will also check the crime rate in your neighborhood to establish the risk of vehicle theft.
Once you know what influences your car insurance premium, you can take the necessary steps to keep costs down. In addition to saving you money, being a cautious driver will help you avoid auto accidents. However, there is always the possibility of another motorist’s negligence putting you in harm’s way. Should this happen, the attorneys at Carey & Hamner, P.C. will assist you in pursuing compensation. With more than 20 years of combined experience, they have successfully guided numerous Dothan and Enterprise, AL, residents through the process of filing a personal injury claim. Call (855) 435-4797 to discuss your case, or visit them online for more information on their legal services.