You are a safe driver with a good driving record but your insurance rates are higher than you think they should be.
The truth is your insurance company looks at more than just your traffic tickets and accident history when determining the value of your policy, and not all the factors they consider are within your control.
1. Your age, sex and marital status
Insurers use statistical data to analyze your risk as a driver. Historically, young single males cause the most automobile accidents and accrue the most traffic violations. You may see your premiums fall as you age and mature. Additionally, adding a young person to your policy will likely cause your rates to spike.
2. The facts about your car
You put a lot of thought into the car you purchase, and so does your insurance company. The following vehicle variables determine the probability of future claims:
- Purchase price
- Safety tests
- Accident rate
- Cost of repairs
- Theft rate
3. How much time you spend on the road
When your insurance agent asks where you live and work, they do not just want to know where to send your documents. The longer your commute, the risker you are, and your driving patterns may be the reason you pay such a high premium for coverage.
It is important to understand how insurance companies determine your risk so you can take steps to lower your costs.
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