Car insurance – you need it if you’re going to be operating a vehicle, but things can get expensive pretty quickly. No one really knows the algorithm individual insurance companies use, but there are a few factors that don’t change regardless of the company. One of the most important things to remember is that insurance companies look at you as a risk, whether high or low. That holds a lot of weight in the quote and rate you receive. So, what goes into their factoring process? Take a look:
· Your Credit
Credit scores are just something you can’t get away from. While it may not seem fair, insurance companies look at credit history to determine whether they will have issues with the premiums being paid. Although having a vehicle is often a necessity and insurance a priority, your credit is still judged based on what you have – and haven’t done.
· How You Drive
If you’ve always wanted to drive in the Indy 500 and rack up a lot of tickets, chances are you’re going to have a higher premium. If there are instances of driving under the influence, or there are quite a few at-fault accidents in your past, the insurance company will not be kind. Be prepared to pay a little (or a lot) more.
Although insurance companies are supposed to pay your claims, especially if they are valid, they don’t like it. If you have had a few claims over the past couple of years, it could be a problem for you. They may view you as a risk, which increases your premium.
The type of vehicle you drive can have a significant impact on your premium. Vehicles that are very expensive, and have huge horsepower are immediately red-flagged for further review. If your goal is to have an inexpensive premium, getting a sportscar or one that is very expensive won’t help your cause.
Depending on where you live, your premium will vary. Insurance rates differ based on state and zip code. One of things insurance companies check for is what happens in the area. If there are a large number of accidents or thefts, it doesn’t matter how good of a driver you are, you will be impacted in some way.
The older you are, the cheaper your premium becomes until you reach a certain age. It goes in reverse for young people. The younger you are, the higher your premium is until you reach age 25. Young men usually have higher premiums.
· Marital Status
If you’re married or are about to get married, you can look forward to having lower premiums. Chances are you’ll have a family policy moving forward, and they look at being married as responsible.
Work with an insurance agency that can find the best quotes and discounts for you. The team at Myers Insurance Group has been servicing clients in Savoy, IL, and the surrounding areas for many years. Don’t take the chance of getting a premium that breaks your budget and doesn’t deliver on coverage. For more information on obtaining great rates, contact the team at Myers Insurance Group today!