How Do Auto Insurance Companies Know How Much to Charge You?
Auto Insurance Rates are different for different drivers for a variety of reasons. Two simple factors that affect your auto insurance costs are your driving record and the value of your car. There are also many other categories that Auto Insurers looks at in determining how much you are going to pay;
1) Your Sex – Men typically have more accidents than women, and therefore men automatically are charged a higher auto insurance rate
2) Your Age – Drivers under 25 are typically considered “high risk” drivers and are more likely to get into accidents.
3) You Marital Status – Believe it or not, if you are married, you are less likely to get into an accident as compared to a single driver. Married drivers see discounted car insurance rates because of this fact.
4) Your Credit – Though it is not often detailed, some insurance companies examine a driver’s credit before pricing an auto insurance policy. Higher credit rated drivers often receive better rates because not only are they less likely to not pay their auto insurance bills, but also they get into less accidents than people with average or below average credit scores.
5) Where you drive and how you use your vehicle – If you drive to work during rush hour, you are at a greater risk of having an accident than if you only drive for errands and recreation on the weekends. Drivers who use their own vehicles for business are considered to be at greater risk.