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Seven Variables That You Must Consider Before Purchasing A Car Insurance

May 18, 2022

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Seven Variables That You Must Consider Before Purchasing A Car Insurance

Finding car insurance that aligns with your budget can be challenging. Calculating auto insurance premiums is complex because every insurance agent is different. Additionally, factors must be taken into account when assessing a policy. To help ease some of the stress involved in searching for the right car insurance rate, let’s analyze some important variables that can directly impact your premium.

  1. State Requirements

    Your state of residence is one of the most significant factors regarding your car insurance rate. Premiums for minimum coverage vary significantly by each state. Each state has different laws regarding auto insurance and the required coverages. The more coverage you purchase, the more expensive your premiums will be.

  2. Age

    The driver’s age also impacts car insurance rates.If you are a Young, amateur motorists may also be labeled by their insurers as high-risk drivers. Research shows that young motorists are more likely to be involved in an auto accident. As you start aging and gain more experience on the road, your rates should start declining. However, your rates will start increasing again as you reach senior status. Senior drivers are considered high-risk due to a higher probability of being involved in an accident and getting injured.

  3. Yearly Mileage

    The number of miles you place on your car can impact your car insurance rates every year. The more you drive your car, the higher your chances of Accident involvement. If you only drive occasionally, your rates will be lower than regular drivers.

  4. Vehicle Make and Model

    Research shows that some vehicles are less costly to cover than others. Car insurance companies prioritize safe cars, as they are less likely to be involved in major collisions. If your car has industry-leading safety ratings, you may qualify for a discount. Suppose you are operating a high-end car. In that case, the chances of you filing for an expensive claim increases, which raises your premium. If you are driving a car with high theft rates, that also increases your car insurance rate.

  5. Credit History

    Your credit history is something auto insurance companies look at when calculating premiums. Research shows that drivers with poor credit need to pay substantially higher premiums than their peers. You may qualify for auto insurance premiums if you have a strong credit score. Also, remember that Massachusetts and California are among those states that don't look at credit scores when calculating premiums.

  6. Zip Code

    The area where you reside is an essential variable for insurers to assess because it impacts the likelihood of your car being damaged. Staying in an area with a high crime rate and lots of traffic may cause your premiums to rise, whereas you will likely have lower rates if you reside in a rural area with less crime. You may qualify for a discount depending on where you park your car.

  7. Serious Violations

    Auto insurance will be expensive if you have previous car accidents or traffic violations on your record. Having multiple violations on your record may classify you as a high-risk driver. Most carriers only assess traffic violations dating back three years. However, things may become complicated if the violations on your record are severe and you are convicted. It's recommended that you shop around every two years to see if you can find better terms.

Consult with Fuller Insurance Agency

Researching these variables thoroughly can help alleviate stress while searching for the right car insurance rate. If you have any questions, contact our team at Fuller Insurance Agency, and we can assist you.

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