It’s amazing how much more complex living is today than it was just a couple decades ago, isn’t it? Auto insurance is another one of those things that changes over time as we learn more as a society. Speaking of which, what affects your car insurance rates, anyway? Take a look at this brief guide to learn the top five things so you keep your rates as low as possible:
- High-Risk Violations
Just how safe, or dangerous, of a driver are you? Obviously, that factors into your rates. But exactly how does your driving actually affect what you pay? Depending on the number of violations and accidents you have to your name, you can increase your costs by 20 – 200%! So, if you were a perfectly safe driver with no high-risk violations, you might pay $1500 annually. A 200% increase balloons your payment to an astonishing $3000! If there’s anything you can do to keep your driver’s insurance in check, it would be to drive safely.
- Credit History
Like it or not, insurers factor in your credit history when calculating your rates. Drivers with poor credit pay an average of 71% more than ones with good credit. So if you take that same $1500 payment we talked about before, you could easily find yourself paying a total of $2565. That’s $1065 more just because of your credit score!
- Insurance Coverage Gaps
Insurers look at not having insurance at any time as a major negative. They assume you drove while uninsured. To put this in perspective, drivers with five years of continuous coverage pay about $182 less per year than drivers who have never been covered.
- Zip Code
