Car insurance companies share common factors in determining the risk of insuring drivers. From age to type of car insured, car insurance companies decide how much you will pay based on your risk of filing a claim or getting into an accident. Agents at The Accel Group work with several leading insurance companies to ensure affordable coverage that suits you best. They will design the right plan with policies that fit your specific auto insurance needs. The factors below can help you pre-determine the influences that play a role in the price you pay for car insurance.
Type of Car Insured
According to the National Highway Traffic Safety Administration the Honda Accord was the most-often stolen car in the United States last year, and therefore one of the priciest common cars to ensure. Many car insurance companies take the likeliness a car will be stolen and safety rating standards into consideration when determining cost of coverage. Driving a car with high safety ratings and low threat to theft helps drivers pay a lower rate for car insurance.
Frequency and Distance of Driving
Commuters and drivers traveling long distances for work tend to pay more for car insurance because of the increased time spent on the road and in the car. Regardless of a driver’s history with safe driving, spending more time on the road increases chances of an accident and for car insurance companies increases the driver’s risk of filing a claim.
Accidents and Traffic Tickets
Although often unavoidable, accidents big and small play a huge role in car insurance companies’ cost to insure drivers. Different factors such as severity of the accident, driver at-fault, and driver value to the company can determine the amount car insurance companies choose to increase rates following an accident. Safe drivers pose less risk to insurance companies, therefore drivers with a history of accidents or a poor driving record will pay more for car insurance because of an increased risk to the company.
Drivers ticketed by law enforcement for moving violations may see an increase in cost of car insurance. Excessive speeding and drunk driving correlate with higher accident rates and can spike insurance rates depending on the speed of which the driver is ticketed. Complying with the following traffic laws can help drivers avoid expensive tickets and high car insurance premiums:
- Failure to follow road signs
- Failure to follow seatbelt laws
- Driving while intoxicated
Age, Gender, Marital Status
Car insurance companies take age, gender, and marital status into consideration when determining a driver’s cost of coverage. According to the Institute for Highway Safety, 71% of all accidents in 2012 were caused by male drivers. Men statistically drive faster and more aggressively than women and therefore tend to pay more for car insurance. Additionally, drivers under the age of 25 typically pay more for car insurance, because accident rates are higher among young drivers. As drivers gain more experience on the road, insurance companies see them as less of a risk to insure. Finally, married drivers over the age of 25 tend to pay less than single drivers of the same age. All of these factors determine the amount that car insurance companies charge for coverage.
Amount of Coverage and Price of Deductible
Car insurance rates vary depending on the type of coverage and the amount of deductible a driver chooses to pay for. Although car insurance companies are different, most companies allow drivers to choose the coverage and deductible that best suits them. A higher deductible means a lower monthly premium, and vice-versa. The Accel Group is equipped to help drivers choose the best type of coverage to keep families and individuals covered in the event of an accident or collision.