10 Factors that Affect Your Auto Insurance Rates

Automobile insurance is one of those things that nearly everyone buys without understanding it well. How many factors can you list that influence the premiums that you pay for insuring your vehicles?

Here is a list of several factors that may be included in calculating your particular rates. Some of these may surprise you! Your local Middletown NY insurance agents can explain how these factors relate to your particular situation and needs.

1.    Your Driving Record. Do you have a record of accidents or violations? Less skilled drivers pay more because they are bigger risks. 

2.    Your claims history. If you make lots of claims, you will pay more. That is one reason why many opt for a higher deductible and pay for small repairs out of pocket.  

3.    Your Usage/Mileage. Do you drive the car to work or school? For business? For pleasure? The more you drive your car, the more likely you are to be involved in an accident, and thus the higher your premium.   Ditto for miles driven annually. 

4.    Number of drivers. More drivers means higher risk. One car with two drivers gets more use than one car with one driver. So one driver with two cars might just get a break using that logic. 

5.    Driver age. Drivers under 25 are four times more likely to have more accidents, so their rates are higher. Also, most companies raise their rates for drivers over 65, and some raise the rates as early as 50.  

6.    Kind of vehicle. What is its make, model, and year? The models which have the highest theft rates also have the highest premiums, as do those which cost more to repair. (It is a myth that car color matters, though.) 

7.    Area of residence. You will likely pay more if car theft is more common in your neighborhood or if your car is generally parked in a more dangerous area. 

8.    Years at current residence. Long-time residents may pay less as they are seen as having less risk than those who move frequently. 

9.    Your payment record. How responsible have you been with those past insurance bills? Paying late can cost you if you need to reapply.

10.Your occupation. Many are surprised to discover that how they earn a living can affect how much they pay for car insurance. One study found that scientists, pilots, actors, and artists paid the least while lawyers, executives, and business owners paid the most, apparently because those in latter group travels more, suffer more stress, and talk on the phone while driving.

As you can see, the overall aim is to calculate just how big a risk you are. Insurance companies provide a service, but they cannot do it at a loss. While each person is different, they attempt to figure out which risk group you are most like by looking at the above factors, as your Port Jervis insurance agents can explain.

While some factors are beyond your control, others are not. In all cases, when you want the best insurance rates and the discounts you deserve, you should consult with your Kingston NY insurance agent for individual quotes.