What affects your insurance price?Sunday, 29 May 2016 19:58
Factors That Affect Insurance Rates
The rates of automobile insurance are the result of many variables such as the prior costs of injuries and property damage. Each state has their own Department of Insurance that regulates their own automobile insurance. They look at all the issues related to consumer driving and have to decide what
needs to be done to remain profitable. They also need to have the resources available for the unpredictable wrath of mother nature. Listed below are additional factors that will affect your automobile insurance.
Postal codes are used to determine the rates applicable in your area. The state in which you live, will have been split up into different territories. This means that if you live in Southern California, the rates could be completely different than if you lived in northern California.
Type of Vehicle
Your vehicle quote will largely depend on the type of vehicle you are driving. Vehicles are put through rigorous testing to see how they will stand up in various accident situations. The standards are very high and each vehicle is rated accordingly.
Age of the driver always plays a huge part in the calculation of rates. The rates for a person under 25 years of age, will be much higher than that of an experienced driver.
Use of Vehicle
The lowest rate for the use of the vehicle, is pleasure use only. If you are driving to and from work, or using the vehicle for business, the rate will be much higher. This is because you are out on the road for a longer period of time and have a greater risk of having an accident.
Cost of repairs
The cost of repairing vehicles have skyrocketed. Manufacturers have safety guidelines regulated by the government, while at the same time they need to keep up with the competition. Additional safety measures such as airbags are very expensive to repair and unfortunately, the consumers are the ones who pay for it.
Compare Quotes and Save Hundreds a Year on Car Insurance
The easiest way to make sure that you are getting the best rates is to ask for quotes from different insurance companies. Get started comparing quotes now!