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Auto Insurance

What Factors Impact Your Car Insurance Premium?

Car insurance premiums can fluctuate for every customer and for any number of reasons. It’s important to know what factors are impacting your insurance rates so you can better understand how to manage your finances and plan for the future. 

Age and Gender

Age and gender factor into your car insurance premium due to the perceived risks of certain demographics. Companies tend to raise rates for younger or older drivers. For example, teen drivers are at a higher risk for car crashes, so they pay a steeper price. Drivers over 65 get similar treatment because older people have a higher risk of fatal car crashes. When it comes to gender, male drivers generally take more risks when driving, which results in more car accidents. These factors all play into your car insurance premium. 

Having a Clean History

Insurance companies like it when clients don’t present themselves as a risk. Keeping your driving record clean will help you obtain a lower insurance rate. Those with a history of violations often pay more. This also applies to your insurance claim history and your credit score. If you have filed several insurance claims, your rate will typically be higher, and vice versa. Your credit score lets insurers know if you are dependable. A solid credit score can establish credibility, which can keep your car insurance premium lower. Your history can follow you and be the reason your car insurance premium is higher or lower.

Marital Status

Being married can reduce your insurance rates. This is because insurance companies have noticed that married couples tend to file fewer claims than single individuals. Marriage can be perceived as a sign of stability, whether in finances or other aspects of life. That perception can result in your car insurance premium being more affordable. 

Type of Vehicle 

The make and model of your car can have an impact on your car insurance premium. Different vehicles have different risk profiles based on factors like safety and value, so your rates can vary. Luxury vehicles with newer technology features cost more to repair, so they can cost more to insure. Sports cars are also more risky than reliable vehicles, like an SUV or minivan. What car you drive can have a large hand in the cost of your coverage. 

Type of Coverage

One of the main factors that contributes to a high or low car insurance premium is the type of coverage you have. Almost every state requires car insurance, but there are many different coverage options available. If you look for a plan with more coverage, or if your state requires it, then you will most likely have higher rates. You need to meet the legal requirements of the state you live in, but you should also feel confident in your insurance plan. While it might cost more, having more coverage can help you in emergency situations. 

Understanding car insurance premiums can be tricky. If you’re unsure if your plan is right for you, then Nsure can help with that! Nsure shows customers coverage options from over 50 top-rated insurers. Be sure with Nsure!

See how much you can save when you Nsure!
See how much you can save with Nsure!
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