Things That Can Affect Your Auto Insurance Premiums
may know some of those factors and some may be unknown to many. Let's us discuss the factors that affect your auto insurance premiums.
Age is one of the most important things that affect your insurance premiums. There are studies done by experts identifying the age groups who are most vulnerable to accidents. If you are in the age group with the high risk of accident you will definitely pay higher premiums.
People who are under the age 25 are tagged as high risks. DMV on their website said that for both male and female, drivers who are 16 to 19 years old have the highest average annual crash and traffic violation rates than any other age group. So if you are 16 to 19 years old driver, which has the highest crash rate, and it is more than likely that you are driving with passengers the risks will be higher since, it is not just the driver seen as risk but also the passengers.
Gender is another factor that is considered, males are riskier so they are typically have higher premiums since statistics shows that male drivers are more careless. Census.gov shows that in 2009 male drivers involved in fatal crashes were 32,807 while female drivers were 11,825. There are more male drivers hit with speeding tickets compared to female drivers. Males also on the average drive longer miles than females. The longer travel you take the more chances of risk. If you are a male you may say that it's gender bias, however this is base on statistics.
Occupation or your current job can also affect your auto insurance premiums. Based on studies, there are occupations that are statistically associated with higher accident risk, while others are associated with lower risk. High-risk occupations include doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople. While occupations with low-risks are scientists, nurses, first responders, pilots, accountants, teachers, and artists.
Scientists, accountants, pilots, and artists are known for being detailed oriented, and in the insurance business it means safe driving habits. While, doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople are likely to be always on the phone talking to clients or thinking about work that may cause distraction when driving.
Traffic tickets, if you are a collector of traffic tickets you should expect that you will pay a higher auto insurance premiums. Speeding is associated to higher accident rates that result to a higher risk in the insurance business.
Driving history is one of the most significant factors for insurance companies in computing your insurance premiums. If you don't get into accident or getting a violation, your insurance company will reward you with lower premiums and safe-driving discounts.
Insurance claims, even if it is a minor claim it will definitely affects your insurance premium. If you claim numerous times your insurer will label you as a high-risk driver. If you are involve in a minor accident like light scratches or a minor bump, it's better to take your car to a shop and pay for it rather than file a claim that may increase your premium. However, if you file a claim for theft, vandalism, or flood damage your premium is less likely to increase.
Coverage lapses, the higher the coverage lapse incidents of a driver means that the higher risk to other insured drivers because if an uninsured driver got involve in an accident the insurance company of the driver who is insured will pay for the damages. So the longer the lapse a driver has, the higher the rate. A standard insurance company may also deny your insurance application if you have more than a 30-day lapse in coverage. Even if you don't know that you have lapses, the insurance company will verify this on your behalf. It is more than likely that you will pay higher than normal premiums, even if you have a clean driving record and claims history.
Place of residence, insurance companies also take into account where you live if it is rural or urban areas, in computing your premiums. The larger the city where you live the higher rates, since the more vehicles on the road the higher risk of occurrences. There are also areas that are more prone to crime than others. In terms of location the critical factors considered by insurance companies are population density, climate or weather in that area, crime rate, road safety infrastructures, road maintenance, and parking (garage or side street).
Travel miles, the longer you are on the road driving the higher the risk and it will have an effect on your insurance premium. Insurance companies will not physically inspect your odometer, however they will definitely ask you to give an estimate.
These are some of the factors that insurance companies consider in determining your auto insurance premiums.
<!--[if gte mso 9]><xml> Normal0</xml><![endif]-->You may know some of those factors and some may be unknown to many. Let's us discuss the factors that affect your auto insurance premiums. Age is one of the most important things that affect your insurance premiums. There are studies done by experts identifying the age groups who are most vulnerable to accidents. If you are in the age group with the high risk of accident you will definitely pay higher premiums. People who are under the age 25 are tagged as high risks. DMV on their website said that for both male and female, drivers who are 16 to 19 years old have the highest average annual crash and traffic violation rates than any other age group. So if you are 16 to 19 years old driver, which has the highest crash rate, and it is more than likely that you are driving with passengers the risks will be higher since, it is not just the driver seen as risk but also the passengers. Gender is another factor that is considered, males are riskier so they are typically have higher premiums since statistics shows that male drivers are more careless. Census.gov shows that in 2009 male drivers involved in fatal crashes were 32,807 while female drivers were 11,825. There are more male drivers hit with speeding tickets compared to female drivers. Males also on the average drive longer miles than females. The longer travel you take the more chances of risk. If you are a male you may say that it's gender bias, however this is base on statistics. Occupation or your current job can also affect your auto insurance premiums. Based on studies, there are occupations that are statistically associated with higher accident risk, while others are associated with lower risk. High-risk occupations include doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople. While occupations with low-risks are scientists, nurses, first responders, pilots, accountants, teachers, and artists. Scientists, accountants, pilots, and artists are known for being detailed oriented, and in the insurance business it means safe driving habits. While, doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople are likely to be always on the phone talking to clients or thinking about work that may cause distraction when driving. Traffic tickets, if you are a collector of traffic tickets you should expect that you will pay a higher auto insurance premiums. Speeding is associated to higher accident rates that result to a higher risk in the insurance business. Driving history is one of the most significant factors for insurance companies in computing your insurance premiums. If you don't get into accident or getting a violation, your insurance company will reward you with lower premiums and safe-driving discounts. <a rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/7107002');" href="/links/?u=http://www.myclaimsource.com">Insurance claims</a>, even if it is a minor claim it will definitely affects your insurance premium. If you claim numerous times your insurer will label you as a high-risk driver. If you are involve in a minor accident like light scratches or a minor bump, it's better to take your car to a shop and pay for it rather than file a claim that may increase your premium. However, if you file a claim for theft, vandalism, or flood damage your premium is less likely to increase. Coverage lapses, the higher the coverage lapse incidents of a driver means that the higher risk to other insured drivers because if an uninsured driver got involve in an accident the insurance company of the driver who is insured will pay for the damages. So the longer the lapse a driver has, the higher the rate. A standard insurance company may also deny your insurance application if you have more than a 30-day lapse in coverage. Even if you don't know that you have lapses, the insurance company will verify this on your behalf. It is more than likely that you will pay higher than normal premiums, even if you have a clean driving record and claims history. Place of residence, insurance companies also take into account where you live if it is rural or urban areas, in computing your premiums. The larger the city where you live the higher rates, since the more vehicles on the road the higher risk of occurrences. There are also areas that are more prone to crime than others. In terms of location the critical factors considered by insurance companies are population density, climate or weather in that area, crime rate, road safety infrastructures, road maintenance, and parking (garage or side street). Travel miles, the longer you are on the road driving the higher the risk and it will have an effect on your insurance premium. Insurance companies will not physically inspect your odometer, however they will definitely ask you to give an estimate.
These are some of the factors that insurance companies consider in determining your auto insurance premiums.
Age is one of the most important things that affect your insurance premiums. There are studies done by experts identifying the age groups who are most vulnerable to accidents. If you are in the age group with the high risk of accident you will definitely pay higher premiums.
People who are under the age 25 are tagged as high risks. DMV on their website said that for both male and female, drivers who are 16 to 19 years old have the highest average annual crash and traffic violation rates than any other age group. So if you are 16 to 19 years old driver, which has the highest crash rate, and it is more than likely that you are driving with passengers the risks will be higher since, it is not just the driver seen as risk but also the passengers.
Gender is another factor that is considered, males are riskier so they are typically have higher premiums since statistics shows that male drivers are more careless. Census.gov shows that in 2009 male drivers involved in fatal crashes were 32,807 while female drivers were 11,825. There are more male drivers hit with speeding tickets compared to female drivers. Males also on the average drive longer miles than females. The longer travel you take the more chances of risk. If you are a male you may say that it's gender bias, however this is base on statistics.
Occupation or your current job can also affect your auto insurance premiums. Based on studies, there are occupations that are statistically associated with higher accident risk, while others are associated with lower risk. High-risk occupations include doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople. While occupations with low-risks are scientists, nurses, first responders, pilots, accountants, teachers, and artists.
Scientists, accountants, pilots, and artists are known for being detailed oriented, and in the insurance business it means safe driving habits. While, doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople are likely to be always on the phone talking to clients or thinking about work that may cause distraction when driving.
Traffic tickets, if you are a collector of traffic tickets you should expect that you will pay a higher auto insurance premiums. Speeding is associated to higher accident rates that result to a higher risk in the insurance business.
Driving history is one of the most significant factors for insurance companies in computing your insurance premiums. If you don't get into accident or getting a violation, your insurance company will reward you with lower premiums and safe-driving discounts.
Insurance claims, even if it is a minor claim it will definitely affects your insurance premium. If you claim numerous times your insurer will label you as a high-risk driver. If you are involve in a minor accident like light scratches or a minor bump, it's better to take your car to a shop and pay for it rather than file a claim that may increase your premium. However, if you file a claim for theft, vandalism, or flood damage your premium is less likely to increase.
Coverage lapses, the higher the coverage lapse incidents of a driver means that the higher risk to other insured drivers because if an uninsured driver got involve in an accident the insurance company of the driver who is insured will pay for the damages. So the longer the lapse a driver has, the higher the rate. A standard insurance company may also deny your insurance application if you have more than a 30-day lapse in coverage. Even if you don't know that you have lapses, the insurance company will verify this on your behalf. It is more than likely that you will pay higher than normal premiums, even if you have a clean driving record and claims history.
Place of residence, insurance companies also take into account where you live if it is rural or urban areas, in computing your premiums. The larger the city where you live the higher rates, since the more vehicles on the road the higher risk of occurrences. There are also areas that are more prone to crime than others. In terms of location the critical factors considered by insurance companies are population density, climate or weather in that area, crime rate, road safety infrastructures, road maintenance, and parking (garage or side street).
Travel miles, the longer you are on the road driving the higher the risk and it will have an effect on your insurance premium. Insurance companies will not physically inspect your odometer, however they will definitely ask you to give an estimate.
These are some of the factors that insurance companies consider in determining your auto insurance premiums.
<!--[if gte mso 9]><xml> Normal0</xml><![endif]-->You may know some of those factors and some may be unknown to many. Let's us discuss the factors that affect your auto insurance premiums. Age is one of the most important things that affect your insurance premiums. There are studies done by experts identifying the age groups who are most vulnerable to accidents. If you are in the age group with the high risk of accident you will definitely pay higher premiums. People who are under the age 25 are tagged as high risks. DMV on their website said that for both male and female, drivers who are 16 to 19 years old have the highest average annual crash and traffic violation rates than any other age group. So if you are 16 to 19 years old driver, which has the highest crash rate, and it is more than likely that you are driving with passengers the risks will be higher since, it is not just the driver seen as risk but also the passengers. Gender is another factor that is considered, males are riskier so they are typically have higher premiums since statistics shows that male drivers are more careless. Census.gov shows that in 2009 male drivers involved in fatal crashes were 32,807 while female drivers were 11,825. There are more male drivers hit with speeding tickets compared to female drivers. Males also on the average drive longer miles than females. The longer travel you take the more chances of risk. If you are a male you may say that it's gender bias, however this is base on statistics. Occupation or your current job can also affect your auto insurance premiums. Based on studies, there are occupations that are statistically associated with higher accident risk, while others are associated with lower risk. High-risk occupations include doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople. While occupations with low-risks are scientists, nurses, first responders, pilots, accountants, teachers, and artists. Scientists, accountants, pilots, and artists are known for being detailed oriented, and in the insurance business it means safe driving habits. While, doctors, lawyers, real estate brokers, business owners, executives, architects, and Salespeople are likely to be always on the phone talking to clients or thinking about work that may cause distraction when driving. Traffic tickets, if you are a collector of traffic tickets you should expect that you will pay a higher auto insurance premiums. Speeding is associated to higher accident rates that result to a higher risk in the insurance business. Driving history is one of the most significant factors for insurance companies in computing your insurance premiums. If you don't get into accident or getting a violation, your insurance company will reward you with lower premiums and safe-driving discounts. <a rel="nofollow" onclick="javascript:ga('send', 'pageview', '/outgoing/article_exit_link/7107002');" href="/links/?u=http://www.myclaimsource.com">Insurance claims</a>, even if it is a minor claim it will definitely affects your insurance premium. If you claim numerous times your insurer will label you as a high-risk driver. If you are involve in a minor accident like light scratches or a minor bump, it's better to take your car to a shop and pay for it rather than file a claim that may increase your premium. However, if you file a claim for theft, vandalism, or flood damage your premium is less likely to increase. Coverage lapses, the higher the coverage lapse incidents of a driver means that the higher risk to other insured drivers because if an uninsured driver got involve in an accident the insurance company of the driver who is insured will pay for the damages. So the longer the lapse a driver has, the higher the rate. A standard insurance company may also deny your insurance application if you have more than a 30-day lapse in coverage. Even if you don't know that you have lapses, the insurance company will verify this on your behalf. It is more than likely that you will pay higher than normal premiums, even if you have a clean driving record and claims history. Place of residence, insurance companies also take into account where you live if it is rural or urban areas, in computing your premiums. The larger the city where you live the higher rates, since the more vehicles on the road the higher risk of occurrences. There are also areas that are more prone to crime than others. In terms of location the critical factors considered by insurance companies are population density, climate or weather in that area, crime rate, road safety infrastructures, road maintenance, and parking (garage or side street). Travel miles, the longer you are on the road driving the higher the risk and it will have an effect on your insurance premium. Insurance companies will not physically inspect your odometer, however they will definitely ask you to give an estimate.
These are some of the factors that insurance companies consider in determining your auto insurance premiums.
Source...