Posts Tagged ‘auto rates’

Auto Insurance: Factors Impacting Your Rates

Wednesday, March 31st, 2010

If you’re feeling the auto insurance rate blues, you’re not alone. While a lot of plans are reasonably priced and can even save you money over their competitors, there are several factors that can and will affect your overall rate.

Age

Statistics say that if you’re a driver under the age of 25, your more likely to be involved in an accident than those who are older.

Marital Status

Yes, being married will actually lower your insurance rate. Singles pay more regardless of the driving record.

Gender

Though the stereotype seems to say otherwise, statistics say that women are better drivers, therefore they get a lower rate.

Your Car

You’re going to pay a whole lot less for insurance on a family sedan than you will on sports car or exotic showpiece. The age of your car, the make, model, body style, and engine will all make a difference as well. Oh, and no, the color of your car makes no difference. You’re not going to pay any more for cherry red than you would silver.

Your Driving Record

A good driving record will save you money. A few speed bumps or a seriously flawed record will find you with a higher rate. The good news is that over time, as the record improves, your rate will come down.

Your Credit Score

Believe it or not, your credit rating will affect the car insurance rate you are offered. Like a loan or credit card, insurance companies view those with low credit scores as high risk. Therefore, you must pay a higher premium.

Occupation

For some reason, there seems to be a correlation between one’s occupation and the driving risk they present. People in certain occupations will pay  more than others.

Your Level of Education

That college degree might pay off in more ways than you thought. Those with higher education  might find themselves with an auto insurance discount.

Multiple Cars/Drivers

This is another great opportunity for a discount.

There are other factors that might also make a  difference in the rate you are paying for your car insurance. Your location can make a difference. Lower traffic areas and less vehicle thefts in the same area might find you paying less where those who live in areas with more congestion and a higher rate of theft will often pay more. The number of years you have been driving, the distance your drive every day (mainly to and from your job) and the number of miles you put on your car every year can also have some impact.

When shopping for insurance, keep these things in mind when you see your rate quote. Try to shop around for the best rate and take advantage of the discounts you are able to get. You must have insurance in order for your car to legally be operated 9on the road, but you don’t want to go broke trying to keep it. Look for the discounts and try to get any factors you can change under control to ensure a better rate.

Is your Car Driving up your Auto Rates?

Wednesday, December 23rd, 2009

Our cars are often an extension of our personalities. They define our taste and our sense of style and let’s face it, they often just make us look good.

However, our need for fancy cars may also be driving up the cost of our auto insurance. We all know that sports cars cost more to insure, but did you also know that expensive cars also cost much, much more to insure?

It is a smart idea to consider the cost of your auto insurance before purchasing a car. Many individuals don’t take into consideration the cost of auto insurance when budgeting for a car, thereby leaving many new car owners in a bind when it comes time to pay for costly auto insurance.

There are quite a few factors that come into play when an auto insurance company determines auto rates, including: your age, your driving record, where you live, how much you drive and perhaps most importantly, the type of car you drive.

The following cars have been ranked as the most expensive to insure in 2009:

  • 1 Lexus IS 300
  • 2 Land Rover Discovery Series II
  • 3 Audi S4
  • 4 Jaguar X-Type
  • 5 Mercedes SLK Class
  • 6 Lexus GS 430
  • 7 Land Rover Freelander
  • 8 Mitsubishi Montero
  • 9 BMW X5
  • 10 Toyota 4Runner

Many times, auto insurance companies take into consideration not only the cost of a vehicle when determining auto insurance rates but also its safety ratings (i.e. how it performs in crash tests); the rate at which it is stolen; the anti-theft features it possesses; and the overall flashiness of the vehicle.

If your vehicle is a high-performance vehicle and is capable to going very fast in a very short period of time, you can bet your car will be more expensive to insure. Regardless of your driving record, an auto insurance company will assume that your behavior behind the wheel of a high-performance vehicle will be more irresponsible than when driving a sedan or a minivan, for example.

Before you purchase your next vehicle, give your auto insurance representative a call to receive an auto insurance quote, as your auto insurance costs may play a role in your decision to purchase a particular vehicle.