A variety of factors go into your personal auto insurance rate. Some you may expect and some may surprise you. Let’s examine a few of these factors.
Factor #1: Location
Where you are located will impact your rate. If you live in an urban setting you are statistically more likely to have a fender bender due to the larger number of cars on the road. Therefore your rate will be higher than someone living in an urban setting.
Factor #2:Your Car
Depending on the safety features your car has or doesn’t have, your rate may be higher or lower. Cars with features like a back-up camera or an alarm that goes off when you drift out of your lane help prevent accidents and make your insurance less costly.
Factor #3: Career
Many people find this one surprising. Your job impacts your car insurance rate. Certain jobs are considered more likely to result in a car accident. A real estate agent is on the road a lot increasing the chance of a collision. A doctor may not have slept enough making an accident more likely. On the other hand, a teacher will have a lower car insurance rate.
Factor #4: Marital Status and Education
In both of these cases statistics are the basis of the rate differences. People who are married and have a higher education are less likely to make an insurance claim than those who are single and didn’t finish high school. Therefore the insurance rate is lower for the married college graduate.
In general your car insurance rate is based on how likely it is that you will make an insurance claim. If you live in an area or have a career that makes it more likely you will have an accident you will be paying a higher rate. If you drive a car with safety features and are part of the population that tends to be less likely to have a claim you will play less. For more information about car insurance Contact Us.