Okay, so you know that you need car insurance because the law says so. It’s just something you need to get. But how the heck does the insurance company set your rate? Do they like roll some dice or something? Pick a number out of a hat? Not exactly. We’ll explain what affects your car insurance rates.
What affects your car insurance rates?
Well, there are a lot of things that affect your car insurance rates. Here’s a convenient list:
- Your car. The year, make, and model play a part in your rate.
- Where you live. If you live in a city, your rates could be higher because of the traffic and the trend of higher crime rates in big cities.
- How old you are. Young drivers usually get higher rates because they’re more prone to accidents.
- Accidents. Drivers who have had accidents will most likely see higher rates.
- Tickets/Your driving record. Well, that’s going to come back to bite you.
- Your credit score. If your credit score isn’t so hot, your bank account could hurt a bit more at car insurance payment time.
- The purpose of your vehicle/How often you drive. The more you drive, the higher your chances of getting into an accident.
- Your marital status. Married couples can get lower car insurance rates.
- Safety features. Your insurance company might like it if your car has fancy safety features.
- Your deductible. You could get lower rates if you choose a higher deductible – just don’t set it so high that it would bankrupt you.
- The coverages you choose. Your coverages can also affect your rates.
- Discounts. Yep – you might be able to get some car insurance discounts!
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