If you operate a motor vehicle, insurance isn’t a want; it’s a need. Even so, getting the best rates can be tricky. There are a few factors insurance companies weigh in on when calculating how much your premium will be. Knowing these factors can help you determine whether your score will be low, reasonable, or slightly higher than you may have anticipated. There’s definitely a few things you can improve on, which will end up positively impacting your rates. Here’s what you need to know:
· Credit score
Yes, your credit score is a major factor when determining the rate. How much of an impact it has isn’t known, but being on time with payments and having a low debt to income ratio can’t do anything but help.
· Driving history
A history of driving under the influence can severely impact the way your car insurance is quoted. Also, insurance companies weigh individuals who have a number of at-fault accidents are heavily scrutinized. The best thing would be to drive with caution and avoid these reckless acts.
· Car insurance claims history
Insurance companies are designed to cover any accidents, so while the amount of a claim or two may raise eyebrows, it’s the frequency of the claims that’s a factor.
· Vehicle type
Sportscars, cars that are stolen more often, and cars that have high repair costs are often more expensive to insure. The value of the vehicle also plays a role in the amount of the insurance premium.
· Location
Location does matter. Depending on where you live, your premium could be high or low. Areas are usually grouped by state and zip code. If you live in an area where there is a high occurrence of theft, chances are your insurance premium will reflect that. Insurance companies also look at the accident history of an area to make their determination.
· Age
Insurance premiums are usually lower as you get older. Yes, premiums are higher for teens, but young males in general typically receive higher rates as a rule of thumb.
· Marital status
Are you getting married soon? Are you already married? You should be enjoying lower premiums and saving money right now. In general, insurance companies like married couples because they usually insure more than one person. Married couples are also seen as being more responsible.
Taking the time to understand what goes into insurance premiums can help in determining areas you should improve. With so many things going on, making sure your car insurance rates are reasonable should be a top priority. To get the very best rates, it’s always best to work with an agent that understands your needs, budget and can find the best discounts.
For more information on obtaining car insurance rates you can manage, work with the team at Feldbruegge Insurance. Servicing Abbotsford, WI, and the surrounding areas, you can’t go wrong. Don’t let high rates tear up your budget. Our team can help! Contact one of our agents today!
