If you want to drive a car in the United States, you have to have an auto-insurance policy. The unfortunate reality is that many people have a difficult time affording a policy that covers them effectively. Too often, this is because people don’t fully understand the factors that insurance companies consider when deciding on the cost of your policy. That’s why we’ve taken the time to put together this list of the five most common factors behind inflating your auto-insurance rate.
That’s right, your gender actually has an effect on your car insurance costs. This can be good or bad news, depending on your gender. Since insurance companies calculate your potential risk when they come up with your price, statistical patterns play a large part in determining the cost of your coverage. Statistically, women are less likely to get moving violations, in accidents or drive recklessly; therefore, women pay less for car insurance.
Credit history matters for just about everything in a consumer-centric society, and a car insurance policy is no different. Your credit rating is essentially a numeric representation of how likely you are to pay what you owe on time. Obviously, an insurance company has a vested interest in their clients paying them on time. Which is why the better your credit history, the less expensive your car insurance policy will be.
Just like how gender plays into your insurance costs, so does your geography. Why? Statistics. If you live in a highly populated area, like a major city, you’re statistically more likely to get into a car crash than someone who lives in an urban environment. That’s why people who live in cities pay considerably more for their car insurance policy than those who don’t.
We know, being single is hard, but, again, the insurance industry is predicated on risk assessment, which is driven by statistics. Statistically, married individuals are far less likely to get into accidents than those who are single. Unfortunately, that means if you are single you will almost certainly being paying more for your car insurance than your married friends.
Yes, the severity of traffic violations is definitely on a massive scale. We know that forgetting to pay the meter is not as egregious as causing an accident. However, insurers work in aggregate, and they look at the total number of traffic violations you’ve had, not at each individual instance. The more violations you’ve had, the more your car insurance will cost. In fact, out of all the factors we listed today, driving history has the most impact on your auto-insurance rates.
Yes, if you want to legally drive in the UNited States, you will have to have an auto-insurance policy–but it doesn’t have to break the bank! Take the time to do your research, and understand what factors can affect your auto-insurance rates.
Of course, before you make any insurance decision it is important to consult with an insurance professional. The staff at TGS Insurance are experts in car insurance and are always willing to work with you to find the perfect policy for your needs, and your budget. Visit www.tgsinsurance.com to learn more!