There are many factors that affect your car insurance rates. A change in any one of those factors can cause your insurance to go up.
Here is a list of factors that affect your car insurance:
- Age - Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
- Gender - Women are statistically safer drivers.
- Marital Status - A married person will pay less than a single person with an identical driving record.
- Geography - Where you live makes a difference. Drivers living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
- Driving Violations - Having an accident or moving violations on your record (speeding tickets, DWI, reckless driving, etc.) put you at a higher risk for accidents and will likely mean a higher premium. Some insurance companies will penalize you for your record for as many as five years from when the incident occurred. However, keep in mind, as your record improves, your premium will get lower.
- Vehicle Type - A less expensive car will cost less to insure than that a SUV with more bling.
- Accident Claims - A driving record that is clean and free of accidents will hold fare better for you than lots of tickets and/or accidents.
- Credit Rating - Many insurance companies view having a poor, or even no credit history as suggestive of higher risk and thus, charge you a higher premium.
- Occupation - Insurers have statistically found a correlation between your occupation and risk. For instance, a newspaper delivery person is most likely a higher risk than the personal banker sitting at their desk all day.
- Driving distance to work - Miles driven each year . Years of driving experience .
- Business use of the vehicle - Whether or not you currently have auto insurance .
- Theft protection devices (often results in discounts)
- Multiple cars and drivers (another opportunity for discounts)